Samacheer Kalvi Class 12 Commerce Solutions Chapter 25 Government Schemes for Entrepreneurial Development

I. Choose the Correct Answers

 

Question 1. The initiative was launched to modernize the Indian economy to make all governments services available electronically.
(a) Standup India
(b) Startup India
(c) Digital India
(d) Make in India
Answer: (c) Digital India
In simple words: Digital India is a program that helps make all government services available online, aiming to update India's economy. This helps people get services easily without paper.

🎯 Exam Tip: Remember to link government service modernization directly to the "Digital India" initiative for full marks.

 

Question 2. is designed to transform India to a global design and manufacturing hub.
(a) Digital India
(b) Make in India
(c) Startup India
(d) Design India
Answer: (b) Make in India
In simple words: The "Make in India" program works to turn India into a major center for designing and making products for the whole world. This encourages local production.

🎯 Exam Tip: When discussing manufacturing and design, "Make in India" is the key term an examiner will look for.

 

Question 3. is the Government of India's endeavour to promote culture of innovation and entrepreneurship.
(a) AIM
(b) STEP
(c) SEED
(d) AIC
Answer: (a) AIM
In simple words: AIM stands for Atal Innovation Mission, which is the government's effort to encourage new ideas and business ventures in India. It builds a spirit of creativity and starting new businesses.

🎯 Exam Tip: Connect "AIM" directly with innovation and entrepreneurship promotion in your answer.

 

Question 4. should cover aspects like sources of finance, technical know-how, source of labour and raw material, market potential and profitability.
(a) Technical Report
(b) Finance Report
(c) Project Report
(d) Progress Report
Answer: (c) Project Report
In simple words: A project report is like a plan that shows everything about a new business idea, including how it will be paid for, what skills are needed, where materials will come from, and if it will make money. It helps to check if the project is feasible.

🎯 Exam Tip: Remember that a "Project Report" is a comprehensive document covering all aspects of a business venture, not just one area like finance or technical details.

 

Question 5. has to include the mechanism for managing venture in the project report.
(a) Banker
(b) Government
(c) Lending Institutions
(d) Entrepreneur
Answer: (d) Entrepreneur
In simple words: The entrepreneur is the person who starts a new business and must plan how to manage it, which is then written in the project report. They are responsible for leading the venture.

🎯 Exam Tip: Always identify the "entrepreneur" as the key individual responsible for starting and managing a new venture, including its planning mechanisms.

II. Very Short Answer Questions

 

Question 1. Name any four Governmental Entrepreneurial schemes.
Answer: Four important government schemes for entrepreneurs are:
1. Startup India initiative: This helps new businesses by mentoring and supporting them.
2. Modified Special Incentive Package Scheme (M-SIPS): This gives special benefits for certain industries.
3. New Gen Innovation and Entrepreneurship Development Centre (New Gen IEDC): This center supports new ideas and business growth.
4. Dairy Entrepreneurship Development Scheme (DEDS): This scheme promotes starting dairy businesses. These schemes aim to boost economic growth and job creation.

🎯 Exam Tip: List a variety of schemes, including those for general entrepreneurship and specific sectors, to show a broad understanding.

 

Question 2. Give a note on 'Digital India'.
Answer: The Digital India initiative was started to modernize the Indian economy. Its main goal is to make all government services available online, making transactions paperless. This program helps improve how people interact with government services. Its aim is to enhance digital literacy and infrastructure across the country.

🎯 Exam Tip: Focus on "modernization," "government services online," and "paperless transactions" as key points for Digital India.

 

Question 3. List down the two types of finance.
Answer: When we talk about financing entrepreneurial development schemes in Tamil Nadu, there are several types. However, the question asks for two broad types of finance. Generally, finance can be categorized as equity finance (funds from owners) and debt finance (funds borrowed from others). Based on the context provided by schemes, these are some of the entrepreneurial development schemes from the Government of Tamil Nadu:
1. Micro, Small and Medium Enterprises (MSMEs)
2. New Entrepreneur-Cum-Enterprise Development Scheme (NEEDS)
3. Self-Help Group (SHG)
In simple words: The government of Tamil Nadu has schemes like MSMEs, NEEDS, and SHG to help people get money for their businesses.

🎯 Exam Tip: For finance types, always consider both internal (equity) and external (debt) sources, though the answer here describes specific schemes rather than general finance types. When asked to "list down types of finance," a general answer for finance types (e.g., short-term, long-term or equity, debt) is usually expected. However, if the provided answer lists specific schemes related to finance, adapt to that context.

III. Short Answer Questions

 

Question 1. What is "Startup India?
Answer: The "Startup India" initiative is a program by the Government of India. It aims to promote entrepreneurship by guiding, supporting, and helping new businesses (startups) throughout their entire journey. This includes providing mentoring and facilitating various needs for startups to grow. It helps create an environment where new businesses can thrive and innovate.

🎯 Exam Tip: Clearly define Startup India by mentioning "promoting entrepreneurship," "mentoring," "nurturing," and "facilitating startups."

 

Question 2. Expand the following: STEP, JAM, TREAD, M-SIPS, SEED and New Gen IEDC
Answer:
* STEP – Support to Training and Employment Programme (For women)
* JAM - Jandhan Aadhaar Mobile
* TREAD – Trade Related Entrepreneurship Assistance and Development.
* M-SIPS – Modified Special Incentive Package Scheme
* SEED – Science for Equity Empowerment and Development.
* New Gen IEDC – New Gen. Innovation and Entrepreneurship Development Centre.
In simple words: These are short forms for different government programs. They cover training for women, linking bank accounts with IDs, helping with trade, special offers for industries, science for equality, and new centers for innovation.

🎯 Exam Tip: Practice writing out the full forms of these acronyms accurately. Small errors can lead to loss of marks.

 

Question 3. Write a short note on the following
a) Dairy Entrepreneurship development scheme
b) Project report.
Answer:
(a) Dairy Entrepreneurship Development Scheme: This scheme is designed to help entrepreneurs who want to start businesses in agriculture, pets, and animals, specifically focusing on dairy farming. It aims to boost the dairy sector by providing support to new ventures. This helps increase milk production and create jobs in rural areas.
(b) Project Report: A project report is a detailed document that needs to be prepared. It follows a specific format set by financial institutions (like banks) that provide loans. It gives a complete overview of a proposed business. This report helps these institutions decide whether to grant a loan to the entrepreneur.

🎯 Exam Tip: For short notes, define the scheme/concept clearly and state its main purpose or components. For a project report, highlight its purpose and where it's submitted.

IV. Long Answer Questions

 

Question 1. Explain any five government entrepreneurial schemes.
Answer: There are many government schemes that support entrepreneurs. Here are some of them:
Startup India:
* The Indian government promotes entrepreneurship through this "start-up" India initiative by mentoring, nurturing, and facilitating startups throughout their life cycle.
* It was launched in January 2016. The initiative has successfully given a good start to many new entrepreneurs.
* A special fund has been created to help startups get access to money for their businesses. This scheme helps new businesses grow and succeed.
Stand up India:
* This scheme was launched in 2015. Standup India uses government credit programs to help India's less privileged citizens.
* It aims to allow women entrepreneurs, scheduled castes, and scheduled tribes to take part in the economy. This way, they can share in India's growth.
Make in India:
* This scheme is designed to turn India into a global hub for design and manufacturing. It encourages local production and innovation.
* This initiative was launched in September 2014.
* It was a strong call to Indian citizens and business leaders, inviting partners and investors worldwide. The goal was to centralize information about opportunities in India's manufacturing sector.
* This has helped attract investments, encourage new ideas, develop skills, and build world-class manufacturing facilities.
Digital India:
* The Digital India initiative was launched to modernize the Indian economy. It aims to make all government services available electronically (meaning paperless transactions).

🎯 Exam Tip: When explaining schemes, include their launch year (if known), main objective, and key benefits or features. Use bullet points for clarity.

 

Question 2. Describe the steps promoting an Entrepreneurial venture.
Answer: Here are the steps involved in promoting an entrepreneurial venture:
1. Selection of the product: An entrepreneur chooses a product based on their skills and motivation. They also carefully study the business environment, both small (micro) and large (macro). This ensures the product fits market needs.
2. Selection of form of ownership: The entrepreneur needs to decide the best type of business organization for their venture. This could be a family-owned business, a partnership, or a private company. The choice depends on factors like control and liability.
3. Selection of site: The entrepreneur must choose a suitable location to start their business. This site could be an industrial area, private land, or a plot provided by a housing board. Location is important for access to resources and markets.
4. Designing capital structure: Entrepreneurs need to figure out how to fund their business. They must identify sources of money, which can include their own savings, loans from friends or relatives, or bank loans. This plan shows how the business will be financed.
5. Acquisition of Manufacturing know-how: Entrepreneurs can get the necessary manufacturing knowledge from government research centers and industrial consultants. This helps them understand how to produce their goods efficiently.
6. Preparation of project report: Project reports are essential documents that must be prepared according to a specific format. This format is usually prescribed by financial institutions that offer long-term loans. The report details all aspects of the venture. This comprehensive report helps secure funding and provides a roadmap for the business.

🎯 Exam Tip: Present the steps in a logical sequence, from product selection to financing and reporting. Explain the purpose of each step briefly.

12th Commerce Guide Government Schemes for Entrepreneurial Development Additional Important Questions and Answers

I. Choose the Correct Answers

 

Question 1. Atal Incubation centres were launched in the year ........................
(a) 2014
(b) 2015
(c) 2016
(d) 2017
Answer: (c) 2016
In simple words: Atal Incubation centers, which help new businesses grow, started in the year 2016. These centers provide support and resources to innovators.

🎯 Exam Tip: Remember key dates for important government initiatives like the launch year of Atal Incubation Centres.

 

Question 2. NSDM was launched in ........................
a) April -2015
b) May – 2015
c) June – 2015
d) July – 2015
Answer: (d) July – 2015
In simple words: The NSDM, which is the National Skill Development Mission, was launched in July 2015. This mission focuses on improving people's skills.

🎯 Exam Tip: For acronyms like NSDM, recall both the full form and the launch date for accuracy.

 

Question 3. Make in India initiative was launched in ........................
a) September – 2014
b) September – 2015
c) September – 2016
d) September 2017
Answer: (a) September – 2014
In simple words: The "Make in India" program, which encourages manufacturing within the country, started in September 2014. It aims to make India a global manufacturing hub.

🎯 Exam Tip: Ensure you differentiate between the launch dates of various initiatives, as they can be tricky.

 

Question 4. Project Report prepared by ........................
a) Auditor
b) Consultants
c) Development Agencies
d) Any one of the options
Answer: (d) Any one of the options
In simple words: A project report can be prepared by various professionals like auditors, consultants, or special development agencies. It can also be done by the entrepreneur themselves with help.

🎯 Exam Tip: Recognize that multiple parties can assist in or prepare a project report, depending on the complexity and resources available.

 

Question 5. Pick the odd one out:
a) Make in India
b) Khelo India
c) Digital India
d) Stand - up India
Answer: (b) Khelo India
In simple words: "Khelo India" is about sports and fitness, while the other three (Make in India, Digital India, Stand-up India) are about business and economic development. This makes "Khelo India" the different one.

🎯 Exam Tip: To pick the odd one out, understand the core purpose of each scheme and group similar ones together.

 

Question 6. Pick the odd one out:
a) NKDM
b) SPRS
c) M – SIPS
d) PSU
Answer: (d) PSU
In simple words: PSU stands for Public Sector Undertaking, which is a type of government company. The other options (NKDM, SPRS, M-SIPS) are specific government schemes or programs. Therefore, PSU is the odd one out.

🎯 Exam Tip: Distinguish between organizational types (like PSU) and specific government initiatives or schemes.

 

Question 7. An entrepreneur has to apply for ........................
a) Power connection
b) Statutory License
c) Permanent Registration Certificate
d) All of these
Answer: (d) All of these
In simple words: An entrepreneur needs to apply for a power connection, a legal license, and a permanent registration certificate to properly start and run their business. All these are required steps for formal operations.

🎯 Exam Tip: Remember that starting a business involves multiple legal and administrative requirements, not just one. "All of these" is often the correct choice for such comprehensive questions.

 

Question 8. NEEDS initiative was launched by ........................ Government.
a) Central
b) State
c) Both
d) All of these
Answer: (b) State
In simple words: The NEEDS initiative, which supports new entrepreneurs, was launched by the State Government. This means it is a state-level program.

🎯 Exam Tip: Differentiate between central and state government initiatives as this is a common point of confusion.

II. Match the Following.

 

Question 1.

a) i-3, ii-4, iii-1, iv-2
b) i-4, ii-3 iii-2, iv-1
c) i-2, ii-1, iii-4, iv-3
d) i-4, ii-3, iii-1, iv-2
Answer: (a) i-3, ii-4, iii-1, iv-2
In simple words: Startup India relates to a 'Fund of funds', Stand-up India helps 'SC/ST women', Make in India aims for 'Global Design', and Digital India focuses on making services 'Electronic'. Matching these correctly is key to understanding the government initiatives.

🎯 Exam Tip: Learn the core objectives or target groups of each initiative to correctly match them. Focus on the primary outcome or beneficiaries.

 

Question 2.

a) i-3, ii-1, iii-4, iv-2
c) i-2, ii-4, iii-1, iv-3
b) i-4, ii-3 iii-2, iv-1
d) i-1, ii-2, iii-3, iv-4
Answer: (a) i-3, ii-1, iii-4, iv-2
In simple words: STEP is about 'Formal Skill Training', SEED supports 'Motivated Scientists', JAM enables 'Direct transfer of subsidies', and TREAD creates 'Pathways for women'. Understanding the purpose of each scheme helps in matching.

🎯 Exam Tip: Pay close attention to the specific focus of each program to correctly match them with their key features or beneficiaries.

III. Assertion and Reason

 

Question 1. Assertion (A): The entrepreneur has to apply for a provisional registration certificate. Reason (R): It will be issued for a period of one year subject to renewal of two periods of six months duration.
a) Both (A) and (R) are correct. (R) is the correct explanation of (A)
b) Both (A) and (R) are correct. (R) is not the correct explanation of (A)
c) (A) is correct (R) is incorrect
d) (A) is incorrect (R) is correct
Answer: (a) Both (A) and (R) are correct. (R) is the correct explanation of (A)
In simple words: An entrepreneur must apply for a temporary registration certificate, and this certificate is given for one year, which can be extended twice for six months each time. The reason explains how long the provisional certificate is valid and its renewal process.

🎯 Exam Tip: For assertion-reason questions, first check if both statements are individually true, then determine if the reason directly explains the assertion.

IV. Short Answer Questions.

 

Question 1. What is meant by SEED?
Answer: SEED stands for Science for Empowerment and Development. This program aims to give opportunities to scientists who are motivated and field-level workers. They can take on action-oriented, specific projects that bring social and economic benefits, especially in rural areas. The goal is to ensure that the advantages of technology reach a large number of people. It helps in applying scientific knowledge for community development.

🎯 Exam Tip: Clearly state the full form of SEED and emphasize its focus on scientific projects for socio-economic development, particularly in rural areas.

 

Question 2. Mention the time period of the Provision Registration Certificate.
Answer: The Provisional Registration Certificate is given to an entrepreneur after they meet certain conditions. It is issued for a period of one year. This certificate can be renewed two times, with each renewal lasting for six months. This means the total maximum period for a provisional certificate is two years. This allows time for the business to become fully operational.

🎯 Exam Tip: Specify both the initial period (one year) and the renewal terms (two periods of six months each) for the provisional registration certificate.

 

Question 3. What is the procedure for getting a power connection for an Entrepreneurial venture?
Answer: To get a power connection for a new entrepreneurial venture, the entrepreneur must submit applications to the Assistant Divisional Engineer of the State Electricity Board (EB). They also need to pay a Security Deposit and complete all the official paperwork required. This process ensures legal and safe electricity supply for the business. Following these steps is essential for the venture to operate.

🎯 Exam Tip: Outline the specific steps: applying to the EB, paying a security deposit, and fulfilling all official formalities.

V. Long Answer Questions.

 

Question 1. Write Short notes on the following:
a) New Gen IEDC
b) PMKVY
c) AIC
d) SEED
e) TREAD
f) NSDM
g) STEP
h) SPRS
Answer:
a) New Gen. Innovation Entrepreneurship Development Centre: This centre provides limited financial assistance, typically a one-time, non-recurring type of help, to entrepreneurs. The assistance can be up to Rs 25 lakhs and focuses on various sectors such as chemicals, healthcare, aeronautics, agriculture, communications, and nanotechnology. It aims to boost innovation in these key areas.
b) Pradhan Mantri Kaushal Vikas Yojana (PMKVY): This is an initiative by the Ministry of Skill Development and Entrepreneurship (MSDE). It is a skill certification scheme, meaning it helps people get certified in different skills. The main goal of PMKVY is to train young people and improve their chances of getting jobs. This scheme helps reduce unemployment by providing relevant skills.
c) Atal Incubation centers: These centers were established in 2016 by NITI Aayog with a broad goal: to encourage a culture of innovation and entrepreneurship across India. They offer excellent incubation facilities, including capital equipment, monitoring support for startups, and services related to transport and health. These centers provide a nurturing environment for new businesses to grow and innovate.

🎯 Exam Tip: For each scheme, clearly state its full form (if applicable), its parent ministry/organization, its primary objective, and 1-2 key features or benefits.

 

Answer:
d) **Science for Equity Empowerment and Development (SEED):** This program aims to give chances to skilled scientists and workers, especially in rural areas. They work on local projects that help people economically. This helps technology reach many parts of the population, ensuring new ideas directly benefit communities that need them most.
e) **Trade Related Entrepreneurship Assistance and Development (TREAD):** This scheme helps women in India who are less privileged. It makes it easier for them to get loans to start businesses through Non-Governmental Organizations (NGOs). This way, more women can become entrepreneurs and achieve financial independence. By working through NGOs, the scheme makes it easier for women in remote areas to get the support they need.
f) **National Skill Development Mission (NSDM):** This mission was started in July 2015 with a goal to build a "Skilled India." Its main aim is to bring together different industries to create various skill training programs. This helps people learn new skills for many jobs across different sectors, preparing India's workforce for future industry demands.
g) **Support to Training and Employment Programme (STEP) for women:** The STEP program was created to train women, especially in rural India, who can access formal skill training centers. It teaches them important skills for jobs in fields like agriculture, horticulture, food processing, tourism, and hospitality. By focusing on practical skills, STEP empowers women to find stable employment and contribute to their families' income.
h) **Single Point Registration Scheme (SPRS):** This is a beneficial scheme for micro and small businesses. It allows them to be free from paying the Earnest Money Deposit (EMD). Under this scheme, tender documents are also provided to them free of cost. This initiative reduces financial burdens and simplifies the bidding process for smaller businesses.

🎯 Exam Tip: When explaining government schemes, make sure to state their primary objective, who they benefit, and one or two key features or advantages clearly.

 

Question 2. Discuss the preparation of the project.
Answer: Preparing a project report is a crucial step for any new business venture.
• Project reports must follow a specific format set by institutions that offer loans.
• These reports can be prepared by technical consultants, auditors, or specialized development agencies.
• A project report should cover important details like where the money will come from (sources of finance), the availability of workers (labor), necessary raw materials, market potential, and how profitable the venture will be.
It also includes the following assessments:
**Technical feasibility:** This part checks if the project can actually be built and operated. It looks at the availability of resources like water, power, transportation, raw materials, and communication facilities. It also considers the manufacturing process and quality control measures.
**Economic Viability:** This evaluates if the project will generate profits. It involves calculating the demand for the product in both local and international markets, the production capacity of machines, the potential market share, expected revenue, and an appropriate pricing strategy.
**Financial Viability:** This section focuses on the project's financial health. It includes:
• **Non-recurring costs:** One-time expenses like land, buildings, and machinery.
• **Recurring expenses:** Ongoing costs such as wages, salaries, and other overheads.
• The probable cost of production, expected profit, and projected sales.
**Managerial competency:** This looks at who will manage the business.
• In small businesses, the owner or partners usually handle all management tasks themselves.
• In larger companies, a dedicated team of managers is hired to oversee operations. Effective management is crucial for successfully turning a project idea into a working business.
**Provisional Registration Certificate:** This certificate is given after certain conditions are met. It is valid for one year and can be extended twice, each for six months. This provisional certificate gives new businesses time to establish operations before needing a permanent one.
**Permanent Registration Certificate:** A business can get a permanent registration certificate once it has started or is ready to start production. This signifies that the business has met all requirements and is officially recognized for long-term operation.
**Statutory License:** The entrepreneur needs to obtain a license from the local government (municipality) to operate legally. This ensures the business complies with local laws and safety standards.
**Power connection:** The entrepreneur must apply to the Assistant Divisional Engineer of the Electricity Board to get a power connection. A reliable power supply is a basic necessity for almost any business operation.
**Arrangement of Finance:**
• **Long-Term Finance:** This type of finance is needed to acquire permanent assets like land, buildings, and machinery.
• **Short-Term Finance:** This is used to meet the daily operating needs and working capital requirements of the business. Knowing the difference helps businesses plan their funding effectively for both growth and daily operations.
In simple words: A project report is like a plan for a new business. It describes how the business will work, how much it will cost, how much money it will make, and who will run it. It also checks if the business can be built, if it will be profitable, and if there is enough money to start and run it. You also need to get official papers like licenses and power connections.

🎯 Exam Tip: When discussing project preparation, ensure you cover the key feasibility aspects (technical, economic, financial, managerial) and the types of licenses/registrations required.

Lesson In A Nutshell

Various Schemes

• Startup India
• Stand up India
• Make in India
• Digital India
• Jandhan Aadhaar Mobile (JAM)
• Atal Innovation Mission (AIM)
• New Gen. Innovation and Entrepreneurship Development Centre (New Gen IEDC)
• PMKVY – Pradhan Mantri Kaushal Vikas Yojana
• AIC - Atal Incubation Centres
• SEED – Science for Equity Empowerment Development.
• TREAD – Trade Related Entrepreneurship Assistance and Development.
• NSDM – National Skill Development Mission.
• STEP – Support to Training and Employment Programme (For women)
• SPRS - Single point Registration Scheme
• M - SIPS - Modified Special Incentive Package Scheme
• DEDS – Dairy Entrepreneurship Development Scheme.