¥ PROJECT MANAGEMENT AND ENTREPRENEURSHIP introduction on Entrepreneurship Idea Incubation Entrepreneurial Motivation Information Closing the Window Application and Project Reports Preparation Project Management Project Feasibility Studies Project Planning Project Scheduling and Costing Project Monitoring and Control Case Studies NOTE: 20 26 30 37 40 46 58 76 81 103 112 MAKAUT course structure and syllabus of 7” semester has been changed from 2021. PROJECT MANAGEMENT AND ENTREPRENEURSHIP has been introduced as a New subject in present curriculum. Taking special care of this matter we are providing chapterwise model questions and answers, so that students can get an idea about University questions patterns.INTRODUCTION ON ENTREPRENEURSHip . . 1. Which of the following statements is correct? [MODEL QUESTIon a) Self - employment and entrepreneurship is one and the same thing b) Entrepreneurship is considered to be the bes! t form of employment ©) An entrepreneur possesses employment generation capacity 4) An entrepreneur enjoys a guaranteed income. Answer: (c) 2. Entrepreneurship training is imparted in (MODEL QUESTION) a) Banks b) Financial institutions ¢) national small industries corporation d) MSME-DI Answer: (d) 3. The term ‘Entrepreneurship’ stands for (MODEL QUEsTion a) synonym of entrepreneurship b) A manager who leaves the company to start his venture ¢) Entrepreneurs within a corporate 4) an entrepreneur who fails in his venture Answer: (b) 4. Entrepreneurs who take business as an integral part of their life is called [MODEL QUESTION} b) Solo operators d) Drone entrepreneur 5. Short-term loan by an entrepreneur is taken for [MODEL QUESTION] a) Land& building b) Plant and machinery ¢) Computer& equipment 4) Working capital Answer: (d) 6. The odd trait which does not describe an entrepreneur is [MODEL QUESTION] a) high levels Of initiative b) autonomy c) opportunity seeker d) trend follower Answer: (d) 7. Intrapreneurs are [MODEL QUESTION] a) small businessman b) corporate executives ©) corporate executives turned businessman 4) Unsuccessful entroprencurs Answer: (c) PME-2PROJECT MANAGEMENT AND TREPRENEURSHIP 8. The most important trait of an E . " ntrepreneur is a) innovation b) money ¢) labour [MODEL QUESTION] ‘Answer: (2) d) none of these 9. Which words fit the definition of i of intrepreneur? a) Someone working withi iti i Ieteatee ivi vatonl a pone g within an existing business to introduce innovation and » Taking risks for business gains c) Someone generally stick to thi i ears erally 1e processes already in use Answer: (a) 40. Which of the following is ial trait eee ving fs a common entrepreneurial trait? [MODEL QUESTION] b) Viewing changes as threatening c) Aneed for structured environments d) All of the above Answer: (a) 41. According to Schumpeter, an Entrepreneur is [MODEL QUESTION] a) Missionary b) Visionary ¢) Innovator d) Initiator Answer: (c) pursue opportunities without regard 42. What is the process by which individuals [MODEL QUESTION] to resources they currently control? a) Startup management c) Financial analysis ‘Answer: (b) b) Entrepreneurship ) Feasibility planning 43. Which of the following is not one of the environmental factors that may influence the potential of asmall business? [MODEL QUESTION] 2) Banks recognizing the needs of small firm ) An industry with economies of scale oo tomers related to problem solving activities ¢) Close contacts with cus: la J d) Industrial structure favours small independent units Answer: (2) f entrepreneurship as identified by McClelland are sof eee [MODEL QUESTION] d decision making under uncertainly tunity and far-sightedness king 14, The twin characteristics a) innovativeness ani b) perception of opportun ¢) risk bearing and decision mal d) None of these Answer: (a) PME-345. An entrepreneur was described “as a person who innovates and intrody 8 i in the economy” by [MODEL questi Se Een Wala ° b) Joseph Schumpeter ON) c) J. B. Say d) Peter Drucker Answer: (b) 46. Role of an entrepreneur is _ [MODEL QUESTION a) Generation of employment b) Complementing economic growth c) Introduction of new products to market d) Alll of these Answer: (d) 47. The word ‘entrepreneur’ is derived from the French root which means (MODEL QUESTION} a).adventurism —_b) thrill seeking c) managing d) to undertake Answer: (d) 48. A drone entrepreneur is one who a) is very cautious in adopting change c) adopts change easily Answer: (b) [MODEL QUESTION] b) refuses to use opportunities d) is highly innovative 49. Favourable religious belief behind the rise of entrepreneurs was noted by {MODEL QUESTION} a)Schumpeter —_b) Max Weber ¢) Diamond ) Higgins Answer: (b) 20. Gap filling was considered as one of the functions of entrepreneur by [MODEL QUESTION, a)McClelland —_b) AH. Cole ©) Libenstein 4) Adam Smith Answer: (c) 21, Who gave emphasis on innovative idea of entrepreneurs? [MODEL QUESTION] a) Cartilton b) Cochran ¢) Max Webber d) P. F. Drucker Answer: (d) 22. The resistance of employees in an organization against flexibility, growth, and diversification can be overcome by developing [MODEL QUESTION] a) entrepreneurship b) intrapreneurship c) managerial domain d) administrative domain Answer: (b) 23. Which of the following is alternatively called turing? a) Entrepreneurship Feng oor orsee ven MODEL QUESTION b) Intrapreneurship 3 be of stating a new venture fering new products is pas ciet s by an existing company PM ATTAND ENTREPR p.An entrepreneur doing business within q, national a) international entrepreneurshi c) domestic entrepreneurship hip answer? (©) border is called b) intraproneurgy MODEL QUESTION 4) imports P reneurs emergi | 95. Entrep! merging from within the Organizati ion are termed as a) Organizers b) Managers [Mon . ¢ EL QUESTION) answer? (©) )Intrapreneurs a) Leaders. 26. Responsive societies will a) Adapt to changes [MODEL QUESTIO ¢) Empower innovators al Encourage collaboration ao ‘Answer: (4) II of these 77. Anintrapreneur fuooeaue a) is semi-independent b) is real o1 STION] ; f the business ¢) bears full risk of the business d) takes rafts o it answer: (2) profits of the business 8. An entrepreneur was described “as a person who prays a certain price for 2 product to result it at an uncertain price” by [MODEL QUESTION] a) Richard Cantillion b) Joseph Schumpeter ¢) J.B. Say ) Carl Menger Answer: (a) B. can be defined as process that enable an individual to take many action at one time to achieve desired goal [MODEL QUESTION] a) attitude b) convergent thinking ¢) divergent thinking d) rational thinking Answer: (c) mething new. [MODEL QUESTION] a f creating So! a) inno shows the process ofc" ) business model sinc d) creative flexibility ¢) modeling Answer: (a) ‘Short Answer Type uestions [MODEL QUESTION] a ; Define the term ‘Entrepreneurship. sWer: Ncept in? been The term “Entrepreneurship has be Cutreprendre. derived from the French word pME-SEntrepreneurship is the process of development of individual talents to provide supply of entrepreneurial services. It is the combination of the individual, the environment, socio-cultural factors and the support systems. Definition of Entrepreneurship © Various thinkers have defined entrepreneurship in different ways. Some of the definitions are stated as under: a | According to Robert C.’ Ronstadt, “entrepreneurship is the dynamic process of creating incremental wealth. This wealth is created by : individuals who assume the major risks in terms of equity, time and/or career commitment of providing value for some product or service. The product or service itself may or may not be new or unique but value must somehow be infused by the entrepreneur by securing and allocating the necessary skills and resources”. . Berna defines, entrepreneurship is basically a type of human skill or more accurately, a combination of skills and abilities. Bowen and Hisrich state that entrepreneurship is the process of creating something different with value by devoting the necessary time and effort, assuming and accompanying financial, psychic and social risk receiving the resulting rewards of ‘monetary and personal satisfaction. According to Joseph A. Schumpeter, a great Harvard economist, the task of entrepreneurship “is to reform or revolutioni: an invention ot, more generally, an untried technological possibility for producing a new commodity or producing an old one in a new way, by opening up a new source of supply of materials or a new outlet for products. Entrepreneurship as defined, essentially consists in doing things that are not generally done in the ordinary course of business routine.” 2. Define the term Entrepreneur. [MODEL QUESTION] Answer: * In simple sense, an entrepreneur is someone who identifies an opportunity, collects the money and other resource’ needed to exploit that opportunity and takes some or all of the risks associated with executing industrial or business ventures, Berna defines entrepreneur as one who brings into existence a new industrial enterprise either alone or in collaboration with others. © Joseph A. potentiali schumpter defines entrepreneur as an innovator who is characterized by ies of doing new things or doing things in a newer way. He is an economic leader with atavistic will power and sets a creative response to situation and acts as a chief conducive factor in the process of economic development. To conclude, an entrepreneur is one who, as a key-planner, sole risk-taker and decision maker; brings into existence a new enter prise/venture either’alone or in collaboration with others. PME-64, pistinguish between an entrepreneur an nswer? cally in ind ‘alifed person having a degree ans/Seience/Commerce or Engineering. a ‘Technology along with an MBA “ TA manager is satisfied with his dayaoday management work of an existing running business owned by an individual group ‘or a professional company belonging to. share holders 12 manager, [MODEL QUESTION] pa i Entrepreneur An entrepreneur may oF nay not b mic qualifications extra value in 'd and the acade May not be of much developing business z at entrepreneur has to be mentally and Physically busy all the time developing his own business, delving into the nitty-gritty of business problems and bearing the stress and strain, 3, A manager will normally get a fixed salary at the end of the month, and sometime may geta commission on production or marketing 3. An entrepreneur normally draws a monthly salary/alliance/lump sum from his business accounts which may be flexible depending on the business position, He may however siphon off some money from the business and either buy some shares/car or land/remove some money in separate account. This may be an honest effort or a business tacties depending on the particular entrepreneur. +A manager normally gets the backing and support of the senior managers and top people of the company and is normally a happy person with a regular stereo typed life style, going to office at 10.00 A.M and leaving at 5.00 P.M unless he is in a department where his presence is required at odd hours. 4, An entrepreneur on the other hand has @ very irregular life, working hard throughout the day visiting Govt. offices, banks, customers etc, and coming back home very late at night, His eaming per month is normally about four times of his contemporary manager if he is an successful entrepreneur. 4, What are the risks faced by an entrepreneur? Answer: An entrepreneur hi Firstly, an entrepreneur ‘has to business risk in the sense that the face, he invests most, if not all, of his perso get seed (venture) capital normally from Thirdly, an entrepreneur takes a ct initiating a venture with highly f Fourthly, an entrepreneur incurs fami! attention to family and others. Lastly, an entrepreneur assum failure rate of big ent «a high degree 0 1 Secondly, an entrepreneur has (0 in his ow business, a8 he does not reer risk in th uncertain future. ly and social risk es a psychologt [MODEL QUESTION] s to face different types of risks. ; eee ae tunching a small business, substantial erprise is quite high. f financial risk simply because the external sources. .e sense that he leaves a secure job for 5 —he is left with little time for ical risk. pME-7ip i i king Behaviour and Innovation’, Do . ‘Entrepreneurship is influenced by Risk Ta " ca cane with this statement? Briefly justify your assertions. [MODEL QUESTION} Answer: ; | . | : The two qualities of entrepreneurs namely, Risk taking behavior and innovation definitely influence the quality of entrepreneurs but it is also true that entreprencurship is influenced and developed by (a) family background (b) idea, Item or service selection (c) capacity to prepare project report (d) capacity of interpersonal relationship (e) idea about marketing and (f) self-confidence. on An entrepreneur is also influenced by the above in different cases. 6. Explain Psychological and Social factors of entrepreneurship, eee Answer: | 5 The psychological and social factors of an entrepreneurship have been studied by many authors like McClelland, Hayek, Schumpeter, Schumacher and others who have found out that the psychological factors of entrepreneurship is influenced by the family background of the entrepreneur. If he comes from a business family he is more likely to take up further business activities of his own or jointly with the other members of the family. This happens in Gujarat, Rajasthan, Punjab, Tamilnadu and partly in Karnataka, Maharashtra, Andrapradesh,. Chhattisgarh, Jharkhand and Haryana, The psychology of the young generation in state like WB, Bihar, Assam, MP, Kerala etc. is predominately service oriented and not with risk taking orientation. A time has come when this Psychological factor should be challenged and changed both for economic development, investment and employment generation. The social factors also are important because many families looked down upon entrepreneurship and feel the doing business is the job of mediocre and not for the academically brilliant people claimed by some states like WB, Kerala, Delhi, Haryana etc. But a time has come when these social factors also should be seriously challenged and changed to suit the economic development of the country. 7. What is innovation? [MODEL QUESTION] Answer: © Innovation refers to the process of conver © Innovation may be defi an organisation. © In defining innovation P.F Drucker States that innovation is the means by which new and newer products and technologies are invented, To conclude, innovation is the process of doing new things in a newer way with the help of new and newer technology. ° rting a creative into a useful product. ined as the successful implementation of creative ideas within PME-8PROJECT MANAGEMENT AND ENTREPR NEURSHIP 8, Distinguish between creativity and innovation, Answer: [MODEL QUESTION] Creat 7, Creativity implies the ability 2. Creativity is the pre-requisite to Innovation Tnnovation 1. Tnnovation implies activity 2. Innovation is the transformation of creative| ideas into useful application 3. Innovation induces new and newer products or] service, new technologies new markets and new sources of supply with the re-organisation of the existing system. Innovation depends on the CaN esd creativity which is the ability of a person |. Creat wed as new insight|4. Innov: is the radical, discontinuous chan which indicates better ways of dealing withland creativity is the ability to devise and reality. implement such changes. 5. Creativity may be treated as the cause. [5 Innovation may be treated as the effect. 5. Creativity induce invention 9. What are the techniques of creativity enhancement? [MODEL QUESTION] Answe Techniques of creativity enhancement The following techniques may enhance creativity. ¢ Brainstorming : > Brainstorming is an important technique for stimulating imaginative and novel ideas. — This takes place in a class room setting, generating ideas in the form of free association. + This free association with unrestricted thinking helps to generate novel unique solution could be reached. e Synectics | : | . > Synectics refer to the generation of new ideas or using old ideas in a new way from unsuspecting angles. o | | > This approach of creativity enhancement assists in generating such ideas. IODEL QUESTION] fea anda 10. Mention the entrepreneurial qualities and competencies. [Mi Answer: ; Entrepreneurial Qualities and Competencies id competencies are require The following qualities an ar L Must have vision: Vision is a guiding purpo foreword, Entrepreneurs’ vision serves as a bacon an 2. Must have creative talent: An entrepreneur must ae and imention to rn rei st Rave the inovative quality of 3. Must have innovativeness: successful implementation of creative ideas. .d to be possed by an entrepreneur. se which propels an entrepreneur id nothing can stand in the way. have creative talent of thinking PME-94, Must have self-confidence: Self-confidence closely relates to self-esteem, An entrepreneur who is not self-confident does not feel good about himself would not be able to meet a challenge. ; 5, Must have decisiveness: An entrepreneur must have his intuitive powers and be able to make accurate predictions and take’right decisions at right time and right place. 6. Must have high energy level: A successful entrepreneur even in very difficult situation can call on their energy for making things happen. 7. Must have to be a risk-taker: An entrepreneur must have to assume risk under uncertainty. . 8. Must have strong personality: An entrepreneur must possess sound personality that characterize and determine his/her unique patterns of adjustment in his/her relationships with others and his/her environment and which make the entrepreneur different from others. 9, Must have managerial qualities: An entrepreneur must have some managerial qualities like organizer, director, ‘motivator, controller, decision maker and communicator etc. 10. Must have high level of motivation: Motivation is a dynamic force setting an entrepreneur into motion and action. 44. Discuss the role of Government in promoting entrepreneurship. [MODEL QUESTION] Answer: Government has a big role in developing entrepreneurship in the country as well as every state for various reasons: a) Govt. can create jobs for a maximum of 2 — 5% of the young people, balance 95 -98 % people depend on themselves either for a professional carrier or for creating self — employment along with job opportunities of hundreds and thousands of people. b) For this govt. has a big role eg, offering infrastructure to all prospective entrepreneurs e.g., land, building, water, electricity etc either separately or in the form of “Industrial estates” where all facilities are available at one place. c) Government must arrange for loan of different amount with different interest rates and various forms of facilities and conditions. Government loans can bé given both in cash, kind, and subsidies, non — refundable and as grant. This should be available on the project or entrepreneurship basis or on interest and hypothecation basis which create problems for entrepreneurs on the beginning. d) Bank loans also should be facilitated by Government so that govt. at times can be the guarantor for the loan. @) Technology should be made available by Government either from its own sources e.g,, existing Government factories or from universities and consulting firms. 1) Marketing facilities should be created by Government for marketing various products like agricultural, mineral, metallurgical, chemical, glass and ceramic, cotton, textile: electronic computer and various services and financial products. PME-10PROIECL MANAGEMENTANT g) Government should also help the products to create foreign market components. i) Government should offer subsidy Government should offer training facil technology, labour, finance, marketing, computer NIREPRENEURSHIP ew entrepreneurs to import and export various 8 well as improve their other produets with fore to prospective entrepreneurs in as well as Business Management. as well as various facilities through SISI, C &SSI. KVIC, SIDBI, WBFC, WEBCON, and WBSIDC. . j) Above all govt. role is to promote, develop and when th hould co-operate in all possible ways, they 12, Differentiate between convergent thinking and divergent t! Answer: Convergent thinking wy approach the Government, king? [MODEL QUESTION] Divergent thinking Convergent thinking refers to the process oF figuring out a concrete solution to any problem. Divergent thinking refers to the process of thinking to which explores multiple possible solutions in order to generate creative ideas. Tris a straight forward process that focuses on figuring out the most effective answer to a problem. This process refers to opening the mind in various directions and trying out multiple solutions for a problem. ‘Methods used in convergent thinking involve reorganising the previously tried, out techniques and re-applying them along with the stored information Here, methods relate to figuring out new procedures to solve a problem despite existing solutions. This process helps to find out the best possible answer to any problem, which are. accurate most of the time and there is no room for ambiguity. ‘As this process keeps the options open, accurate answers may not be complete! idemtified ‘The characteristics of convergent thinking is Speed, accurately and logic. The characteristics of divergent thinking is spontaneous free flowing and non-linear. 13, What are steps of innovation management? Answer: [MODEL QUESTION] ‘The steps/stages of innovation management are summarized as under: 1, Idea Generation and Mobi > New ideas are created during idea generation. process. > Mobilization occurs when the idea is location, 2. Advocacy and Screening ~ Advocacy and screening help ev: problems, as not all ideas are w reached about an idea’s future. aluate an idea and measures its potential benef orth implementing. From there, « decision This step is the showing stage of the moved to a different physical or logical3. Experimentation —> This step/stage tests an idea, suchas with a prototype or pilot test. —> Experimentation leads to new ideas due to information that is gathered on the results and overall feasibility of the original idea. 4, Commercialisation —> Commercialisation aims to create market value for an idea by focusing on its potential impact. — This is the step/stage of the innovation process when the focus shifis from development to persuasion. + > After the idea is classified and business plan is created, it will ready for diffusion and implementation. 5, Diffusion and Implementation > Diffusion/Adaptation process refers to the mental process through which an individual passes from first learning about an innovation to final adaptation. Diffusion is the company wide acceptance of an innovative idea, and implementation sets up everything needed to develop and utilize or produce the innovation. Adoption and diffusion of any new product (innovation) slowly develops because of resistance and the time taken for communication of the innovation. When early adopters follow the lead given by innovation, adoption process gains momentum and grows rapidly. The peak point arrives when most of the potential buyers have tried the new product. > Long Answer juestions 4. “Entrepreneurial Ideas evolve through a creative process by which creative people germinate ideas, nurture them and develop them successfully”. - Justify the statement. [MODEL QUESTION] Answer: The creative process generally follows the following broad outlines: 1. Idea germination > The first stage in the creative process is the idea-germination. — This stage is the sowing stage of the process. 2. Preparation > Preparation, in the form of education, training and research, is an essential foundation to build creativity. > Preparation requires a hard and concentrated look at the problem at hand and its various parameters in order to develop a break-through solution. —> Itis the creative thinker who continues to look for a different and unique solution. 3. Incubation — Incubation refers to a time of thought and reflection to allow ideas time to grow without intentional effort. > Incubation is a period when the conscious attention is turned away from the current problem at hand. PME-12Creative people may initiate dj 3 Incubation time may take ae Methods to provi 5 It is experienced unconscious mind ve iene period, roblem issue from ne ji © creat is fi Porsstence 'W angles or into new combina Person is able to handle the _» At this state, the decision mak redefined persistently for generat _» Highly committed people remai consideration and remain highly 5, Insight — This stage is actual point. of break-thi incubation and persistent involvement, > Insight is the tentative outcome of the under study. > oe gust feed Person believes that he has found a unique solution to the 6. Verification/Validation -> As, a scientist verifies his/her hypothesis through critical analysis or through laboratory procedure, similarly, the insight or the new idea has to be tested to make sure that the said idea is feasible and valid. -» Verification stage is the development stage of refining knowledge into application. ets frame . Of reference i i or the probler ng new and different conclusions “® in persistently j i : involved in the is commited tothe ade Ie st of isue under rough achieved as a result of preparation, Persistent efforts and thinking to the problem Diagram showing the creative process af Verification Validation Insight Persistence Tea Germination pME-132. Define the Three-component model of creativity. ° > Lie [MODEL QUESTION) Answer: The componential theory of creativity / three-component model of creativity assumes that all human beings with normal capacities are able to produce at least moderately creative work in some domain, some of the time, and the work environment can influence both the level and the frequency of creative behaviour, The three-component model of creativity includes three major components of individual or small group creativity, each of which is necessary for creativity in any given domain. These components are expertise, creative thinking/skills and task motivation. ‘The componential theory of creativity suggests that creativity is most likely to occur when people's skills overlap with their strongest intrinsic interests. Explanation of the three-components Expertise Expertise is the foundation of all. creative work and this component includes memory for factual knowledge, technical proficiency and special talents in the target domain. Creative thinking/skills This component assumes that a person has some incentive to perform an activity and the performance will be technically good or acceptable, if the requisite expertise is present. Intrinsic Task motivation This component will determine what the person concerned will actually do, Here, motivation can be driven by deep interest and involvement in the target work or by curiosity, or enjoyment or personal sense of challenge (intrinsic). Again, it may be to achieve a promised reward or meeting a deadline or winning a competition (Extrinsic), However, intrinsic motivation is more conductive to creativity than any extrinsic motivation. Diagram showing three-component model of creativity EN 3. a) What is meant by Diffusion of innovation? [MODEL QUESTION] b) Explain the factors affecting diffusion of innovation. ¢) What are the diffusion/adaptation process? PME-14PROIECT MANAGEMENT AND PX IREPRENEURSHIP Answer? 4) Diffusion of innovation + The diffusion/consumer adaption process w «The diffusion or adaptation Process is si « The diffusion process looks at what behaviour, «The life cycle concept derives its logical base from the diffusion process + Adoption and diffusion of any new product (innovation) slowly develops because of resistance and the time taken for communication of the innovation. + When carly adopters follow the lead given by innovations, adoption process gains momentum and grows rapidly. The peak point arrives when most of the potential buyers have tried the new product. as developed by E.M. Rogers. ilar to that of product life eyele (PLC). happening in the market, that is, buyet Early Adopters Farly | Late Innovators Majority] Majority Times of Adoption Fig: The Diffusion Process b) Factors affecting diffusion of innovation: The factors affecting diffusion of innovation are stated as under: © Relative advantage of the new product: The. greater the perceived relative advantage of the new product in relation to the existing one, the sooner the new product will be adopted. © Compatibility: If the new producvinnovation fits the values and experiences of potential consumers, the sooner the new product will be adopted © Complexity of the product: It the innovation is complex and di or use, the adaptation is taken a longer time. « Divisibility: If the new producvinnovation may be tried or used with an option to buy, the adaptation will not take @ longer time. © Communicability: If the results of using the new product/innovation can be obtained, observed from verified sources or described to others through demonstration, in such @ case, the adaptation will be sooner. ult to understand ©) Diffusion/Adaptation process: © Diffusion/Adaptation process refers to the mental process through which an individual passes from first learning about an innovation to final adaptation. «An adoption process is a process bringing about a change in buyer's attitudes and perception, Adaptation process covers the following steps PME-151. Awareness: —> The consumer becomes aware of the new product, but lacks information as to usefulness, qualities, performance, etc of the new producv/innovation. 2. Interest: — Being aware of the innovation, the consumer demands more information about the new product its utility, its performance and so on. He actively secks the desired information from sales-persons, opinion leaders, peers and friends etc. 3. Evaluation: —> The consumer tries to reason through pros and cons the value of the new product to him and the extent to which it is good for him. > At this stage, the customer conducts a mental trial of the new product. 4, Trial: — The consumer tries the new product on a small scale experiment to improve his/her estimate of its value 5. Adaptation > The consumer, now, decides to adopt the new idea or product for continued use. 4, Specify the role of entrepreneur in economic growth of a country like India. [MODEL QUESTION] Answer: The economic development of any country depends on the total activity efforts of all individual citizens, groups, villages, cities, provinces, states and the country as a whole and the Nation in particular. When a young man or woman chooses his or her carrier, they have three options: (@) To work in an existing organization by joining it through advertising, interview and selection'and enjoying a safe life by having a fixed salary at the end of every month. (b) To be self — employed in a profession like doctors, lawyers, engineers, consultants, politicians. (©) To be an entrepreneur and be engaged in a business or enterprise of his own by creating a new venture, E An entrepreneur can be defined as one who initiates and establishes an économie activity by setting up his own enterprise, work for himself, produce goods and services by value addition, achieve reputation, money and position by taking a reasonable amount of risk. Whatever a successful entrepreneur does involves the concept of entrepreneurship this is the main field of millions of young boys and girls in all countries where they really create millions of self — employment and offers a multi dimensional society which is Progressive, creative and innovated wealth. Today's world in 21* centuries of bridges and buildings, metallurgy like steel, aluminum, alloys pharmaceuticals like bulk drugs, vitamins , capsules and tablets, communications and electronics, millions of shops, Kiosks, departnettal flores, innumerable shopping malls, shoppers stop, containing eae uses SPorts and games, textiles, readymade garments, shoes, toilets and thousands of cosmetics, All i aes these are reneurship © individuals, teams and companies, SS PME-16PROIECT MANAGEMENT AND ENTREPRENEURSHIP . What Is Entrepreneurship Development? Discuss the role of an Entrepreneur. ——_ [MODEL QUESTION) 1 part: Entrepreneurship Development ¢ The term Entrepreneurship refers to a process of creating something different with value by devoting time, effort and energy, accompanying financial, psychic and other related risks. " application. Development also refers to enhancing an existing potential or asset through the process of learning and application. + Thus, Entrepreneurship Development is the means of enhancing the knowledge and skill of entrepreneurs through, several classroom coaching and programmes and training. * In other words, the entrepreneurship as a process helps entrepreneurs or ventures to get better in achieving their goals. It is a process about supporting entrepreneurs to advance their skills and encourage them to make better judgements and take a sensible decision for all ventures. 2"™ part: The role of entrepreneurs are summarized as under: ¢ The Initiator: The entreprencur is the one who initiates the process of creating an enterprise by coming up with the idea for the business and planning out how to term that idea into a reality. Creation of New Enterprise: The entrepreneur is the key to the creation of new enterprises that energies the economy and rejuvenate the established enterprises that make up the economic structure. Roles in Economie Growth: An entrepreneur plays a vital role in economic growth of a country and provides / generates lot of employment opportunities amongst people and brings stability in economy. * As Economic Pioneers Initiating Changes in the Economy: Entrepreneurs always strive to inerease productivity and improve the quality of output through the application of more efficient production method, better plant-layout, more effective marketing techniques for obtaining maximum output at lower costs. * Entrepreneurs serve as the Spark Plug in the Economy's Engine: Entrepreneurs occupy a central position in a market economy, activating and stimulating all economic activity. The economic success of nations worldwide is the result of encouraging and rewarding the entrepreneurial instinct. : * Balanced Regional Development: The growth of industries in less developed and backward areas, leads to infrastructure improvements like better roads, and rail link: PME-17airports, stable electricity and water supply, schools, hospitals, shopping malls ang other public and private services that would not otherwise be available, © Improvement in Living Standard: An entrepreneur assists in direct way for improving living standard of people and a person can spend his earnings to meet out the basic and comfortable needs along with the branded products or services at cheaper rate. 6. a) Define the concept of Entrepreneurial Competency. State the objectives of it, b) What is Entrepreneurial Mobility? Is there any relation with Motivation Theories? [MODEL QUESTION} Answer: 1 Part: Concept of Entrepreneurial Competency © Any business / venture operation is considered to be very complex in a competitive business environment which is constantly changing with fast technological advancements. An entrepreneur is expected to interact with these environmental forces which require him to be highly competent in different dimensions.like intellectual, attitudinal, behavioural, technical, and managerial aspects. Entrepreneurs are therefore permanently challenged to deploy a set of competencies to succeed in their entrepreneurial endeavors. Thus, entrepreneurial competencies may be defined as underlying characteristics possessed by a person which result in new venture creation, survival and growth. > The characteristics include generic and specific knowledge, motives, traits, self-images, social roles and skills, tolerance for ambiguity, locus on control, persistence, assertiveness, drive and energy, innovation and creativity, problem solving, persuasion, technical knowledge, communication and social skills and goal setting and perseverance, ete. ~2™ Part: Objectives of Entrepreneurial Competenc The objective of entrepreneurial competencies is to combine creativity, a sense of initiative, problem solving, the ability to marshal resources and financial and technological knowledge. > These competencies enable entrepreneurs to provoke and adapt to changes. b) 1" Part: Entrepreneurial Mobili © Movement and mobility is an integral part of human life, entrepreneurs being " exception. Entrepreneurs, like human being, move from one location to another and also from ‘one occupation to another. PME-18PROJECT MANAGEMENT AND ENTREPRENEURSHIP ¢ This movement of entrepreneurs from one location to another occupation to another occupation is referred to as entreprencurial mobil «Thus, entrepreneurial mobility may bé classified as under: 1, Occupational Mobility: a) Inter-generation movement: When a person may move or leave from the occupation of his father, is called inter-generation movement. b) Intra-generation occupational movement: When a person may move or leave from his own occupation during the operational carcer, is called intra- generation occupational movement. 2, Locational Mobility: It means movement or changes in location. This mobility depends upon certain factors like availability of raw materials, infrastructure and labour, neamess to market, own resources, knowledge, experience, socio political situation, etc, . ind from one 2" Pai Relationship between Entrepreneurial Mobility and Motivation Theories: Like motivation theories, in the case of entrepreneurial mobility there are some important motivational factors which influence the entrepreneurial mobility in a given situation and time. Aneducated entrepreneur tends to be more mobile than an uneducated one. © An experienced entrepreneur better perceives the available opportunities, better analyses his strengths and weaknesses and also understands the complexities involved in running an enterprise Technical Knowledge and experience influences the entrepreneurial mobility. «The entrepreneurs may move from the areas with no or less facilities to the areas with more and better facilities, The facilities include: Government facilities ~ availability of raw materials, labours, market facilities and infrastructural facility. «The entrepreneurial mobility is also influenced/motivated by the political factors — tax policy, employment laws, environmental laws, political stability, trade restrictions and tariffs, etc. PME-19IDEA INCUBATION Multiple Choice Type Questions 4. One of the components of Generic strategy is [MODEL QUESTION, a) overall cost leadership b) core competencies c) harvesting strategy d) none of these Answer: (b) 2. BCG stands for [MODEL QUESTION] a) Business Company Group b) Boston Consulting Group ¢) Business Control Group d) none of these Answer: (b) 3. Core competence is [MODEL QUESTION} 2) What the company used to do exceedingly well b) What the company does exceedingly well what the competitors do not do well ) What the company can only do Answer: (b) 4, One of the components of Generic Strategy is [MODEL QUESTION} a) Harvesting strategy b) Core competencies c) Overall price leadership 4) Overall cost leadership Answer: (b) 5. Overall cost leadership is a part of [MODEL QUESTION] a) Porter's Generic Strategy b) Maslow’s Motivational Theory c) Drucker's Management theory ) none of these Answer: (a) 6. Portfolio strategy is a part of a) marketing strategy c) corporate strategy Answer: (c) [MODEL QUESTION] b) financial strategy 4) none of these 7. Which of the following is a force studied under the Porter's 5 forces model? | [MODEL QUESTION] a) Rivalry between existing sellers in the market b) Power exerted by the customers in the market c) none of these d) both (a) & (b) Answer: (d) PME-20NIREPRENEURSHIP o incubation stage in cfeative process refers to 00% " conscious search for knowledge [MODEL Question) b) subconscious assimilation of information ) recognition as being feasible 4) test to prove idea has value Answer: (b) 4, The McKinsey's 7-S framework for strategic management does not include [MODEL QUESTION] a) Staff b) Style ¢) Skill d) Society ‘Answer: (4) 40, The ‘Dog’ cell in BCG Matrix denotes [MODEL QUESTION] a) high growth high market share b) slow growth high cash reserve c) high growth low market share d) slow growth relatively low market share Answer: (4) 44. When developing the operations strategy for a new manufacturing organization, one of the most important considerations is that [MODEL QUESTION] a) it requires minimal capital investment b) it utilizes as much automation as possible ©) it utilizes an equal balance of labour and automation d) it supports the overall competitive strategy of the company Answer: (c) 12. Which of these stands for BCG in BCG Matrix? [MODEL QUESTION] a) Business Core Group b) Business Coordination Group ¢) Boston Consulting Group 4) Business Communication Group Answer: (c) 13. What do stars signify in BCG matrix? [MODEL QUESTION] a) Introduction —_b) Growth c) Maturity d) Decline Answer: (b) 14. Which one of the following is not the step for designing and implementing a blue ocean strategy? IMODEL QUESTION] a) determine where to start and create your team b) define the current state of the industry ©) redefine market boundaries 4) exploit the existing demand Answer: (d) PME-21Short Answer Type Questions 1. What ig meant by Blue ocean strategy? [MODEL QUESTION} Answer? an a ¢ Blue ocean strategy refers to the simultaneous pursuit of differentiation and low cost to open up a new market space and create new demand. ¢ Blue ocean strategy is creating and capturing uncontested market space and thereby making the competition irrelevant. © The idea behind Blue ocean strategy is that every enterprise can achieve higher profit by creating new demand in non-competitive market. e Inblue ocean strategy, the profit is much easier than the rivalry with the competition on the existing market spaces. Long Answer Type Questions 1. State the significance of Porter's five force model in combating intra-industrial competition. [MODEL QUESTION] Answer: Michael E. Porter has developed an excellent and comprehensive conceptual framework to analyse the industry structure, assess the nature of the competitive environment and develop competitive strategies. Porter, while developing his ideas of industry and competitor analysis and their relevance to the formulation of competitive strategies advocates that a siructural analysis of industry be made so as to enable a firm to identify its strengths and weaknesses in the competitive environment. © According to Porter, the indust determination of competitiv. available to the firm, * The significance of Porter's five force model is that the competitive forces shape the strategy adopted and the strategies of rival firms shape competitive forces. © This analysis is useful for a firm if it takes the result of competitor analysis into account while going for a strategic choice, © According to Porter’s fiy ry structure has a strong influence in the matter of @ rules of the game as well as strategies potentially ‘e-forces model of competition, the intensity and the state of competition depends on five basie forces hq : ‘ f et rces which y 1¢ ultimate profit potential in the industry. ee ermme ty © Porter’s five forces model of ¢ i) Rivalry amongst the curr ii) Threat of new entrants iii) Threat of substitutes iv) Bargaining power of suppl ¥)_ Bargaining power of buyer ‘ompetition includes ent competitors iers, and S PME-22PROJECT MANAGEMENT AND ENTREPR NEURSHIP porter’s five forces’ are discussed below: 1 Rivalry amongst the current competitors —» The degree of rivalry amongst different firms is a function of the number competitors, industry growth, product differentiation, assets intensity and es barriers. > But, the industry growth and the number of competitors are the most influential forces. —+ For example, industries with high fixed cost are likely to face price wars when the market is stagnant or over-capacity situations. Again, di industry intensifies competition of it culties in exit from an 2 Threat of New Entrants =» A threat is a major unfavourable situation in the firm's environment which is likely to cause significant damage to the firm. A threat is key obstacle in the firm's current and future position. The factors that could represent as major threats to a firm’s future success are entrance of a new competitor, major technological change, slow market growth and changing regulatory frame-work, etc. Thus, the threat of new entrants may increase the competitive intensity, especially in the matured market situation. 3. Threat of substitutes —> Threat of substitutes also acts a force. Substitute products that satisfy similar needs of the same customer group can also intensify competition. — For example, old steel tubes are losing markets to PVC tubes and copper has lost the market to aluminium and plastics have also affected the market for steel. 4. Bargaining power of suppliers ~ Bargaining power of supplitrs may take place when a supplier enjoys monopoly, like Indian Oil Corporation (JOC) with regard to furnace oil, or in a case where the switching cost of the buyer is very high. 5. Bargaining power of buyers — Bargaining power of buyers indicates a situation when the industry customers/buyers can create a force to the industry to reduce prices of products or supply with extra features at the same price . >* This situation arises when buyers have choice of substitutes or altemative sotirce of supplies for the same product. PME-23Porter’s five-forces model of industry competition 2, Theat of new entrant 4+ Beonomics of scale + Cost advantage 2 Access to distribution the industry 4. Bargaining power of | suppli 1. Rivalry amongst the competitors due to Supplier concentration + Number of competitors th * Buyer concentration Number otbusers 5 industry growth eer Substitute aw materials 1 Produet differentiation See “eet of forward 1 Esitbarrers eeararieies iteration {Asset intensiy imegration 3. Theat of substitutes + Functional similarity + Product identity + Pricing / performance trend 2. Enumerate the factors to be considered in forming the strategic advantage profile of an enterprise. [MODEL QUESTION] Answer: Factors to be considered in forming the strategic advantage profile (SAP) of an enterprise The most critical issue which is at the heart of any corporate strategy is identifying and gaining competitive advantage. Each business requires a set of minimum performance standards and capal which are said to be key factors of success, and these are required to gain competitive advantage. Key factors of success help to assess the strength and weaknesses in relation to meeting the minimum requirements for success. The key factors for success of different industries may be based on different functional areas like engineering, marketing, finance. Strategic Advantage Profile (SAP) tries’ to focus the organizational strength and weakness in relation to certain key factors of success within a particular industry. ‘A business firm, on the basis of the information presented through the key factors of success, can easily construct a strategic advantage profile, which in return focus the advantages available to a business firm in key factor areas with its impact on its functioning. ‘The factors considered in framing the SAP, in the case of a motor cycle manufacturing company, may be the following: PME-24s.eneineering * 2, Marketing 3, Finance 4, Human Resource PROJECT MANAGEMENT AND ENTREPRENEURSHIP [ = Fuel efficiency — Design — Aesthetics — Range of products — Promotional efforts — Price = Channels of di — Cost of capital —+ Financial planning = Skills relating to fund raising — Recruitment, selection, training, development —> HR skills and motivation = Industrial relations bution PME-25ENTREPRENEURIAL MOTIVATIO 4. Which one of the following is/are involved in TRIZ toolbox? [MODEL QUESTION} a) Innovatively improve existing product or process b) Develop innovation roadmap of product and process c) Understand market evolution and driving value parameters d) All of these Answer: (d) 2. Which of the following psychological factors contribute to entrepreneurial motivation? [MODEL QUESTION] a) Desire for taking personal responsibility ; b) Keen interest in situations involving moderate risk c) Organizational skills d) All of these Answer: (4) 3. Beliofs generate a drive for entrepreneurial growth as per theory developed by [MODEL QUESTION] a) Schumpeter —_b) Weber c) Mc Clelland 4) Hoselitz Answer: (c) 4, Achievement theory is given by [MODEL QUESTION] a) Schumpeter — b) Druker ¢) Marshall d) McClelland Answer: (d) 5. The theory of religious belief was given by [MODEL QUESTION] a) Karl Marx b) Max Weber c) Peter Drucker d) Walker Answer: (b) 8. Which of the following is not an external motivating factor?{MODEL QUESTION] a) Enterprising attitude b) Encouragement from big business houses c) Govt. support and assistance d) Availability of factor of production Answer: (4) 7. Which of the following is an internal motivating factor? [MODEL QUESTION] a) Govt. assistance b) Availability of labour and raw materials c) Previous experience 4) Promising demand for the product Answer: (c) PME-26PROM NAGEMENT AND EN TREPRENEURSHIE |. Which one of the following is 5: W) Developing successful busines tans in tho ontroproncuril process? b) Deciding to become an entrepreneur [MODEL QUESTION] c) Growing the entrepreneurial firm d) Moving from an idea to an entrepreneurial firm Answer: (a) 9, According to McClelland an entrepreneur has to be a) profit seeker —_b) conservative “Answer: (d) [MODEL QUESTION] ©) opportunist 4) achiever Short Answer estions 4. Explain the harvesting strategy with an example. [MODEL Question} Answer: Harvesting strategy The term ‘Harvest’ entails minimizing investments while trying to maxi profits and cash flow, with long-run intention of exiting the market. @ In other words, a harvest strategy involves a reduction or a termination of investments in a product, product line or line of business so that the entities involved can reach or harvest - the maximum profits. «A harvest strategy is employed toward the end of a product’s life-cycle when it is determined that further investment will no longer boost the product revenue. Employing a harvest strategy will allow companies to harvest the maximum benefits or profits before the item reaches its decline stage. Companies often use the proceeds from the ending product to fund the development and distribution of new products. Funds may also be used toward promoting existing products with high market growth potential. : Example: A soft-drink company may terminate investments in its established carbonated product to re-allocate funds to its new line of energy drinks during harvest, the soft-drink company can limit or eliminate capital expenses, such as purchase of new equipment needed to support the ending product and also can restrict spending on operations. Long Answer Type Questions 1. Discuss the theory of inventive problem solving (TRIZ). [MODEL QUESTION] Answer: | © The TRIZ theory was developed by the Soviet inventor and science-fiction author Genrich Altshuler and his colleagues, in 1946. The English acronym TIPS is also used in lieu of TRIZ. ® TRIZ theory is developed on a foundation of extensive research covering hundreds of thousands of inventions across many different fields to produce a theory which defines generalizable patterns in the nature of inventive solutions and the characteristics of the problem that these inventions have overcome. PME-27 ize short-run© TRIZ presents a systematic approach for understanding and defining challenging problems as difficult problems require an inventive solution, © TRIZ provides a range of strategies and tools for finding these inventive solutions. © The focal point of TRIZ. basis analysis is to apply systematically the strategies and tools to find out superior solutions that overcome the need for a compromise or trade- off between the two elements. © TRIZ includes a practical methodology, tool sets, a knowledge base 3 technology for generating innovative solutions for problem solving # TRIZis useful for problem formulation, of system evolution. * A number of TRIZ-based computer programmes have been developed to provide assistance to engineers and inventors to find out inventive solutions for technological problems. id model based ysis and patterns 2. Discuss McClelland’s N-Arch Theory. How can this theory be used for studying entrepreneurial motivation? [MODEL QUESTION} Answer: 1" Part: Me. Cleland’s Theory of Achievement David c. Mc Cleland and his research activities propounded a theory of entrepreneurship where he has identified “Achievement” as the main cause of drive for entrepreneurship. He felt that any entrepreneur would feel a great satisfaction, a sense of achieving something through his own initiative and effects, something others will appreciate as a rare achievement which a person cannot generally receive. This feeling of achievement within himself acts as the main driving force which makes him identify or select a line of business, may be a new product, process equipment or service, c ! Ww prod I , on which he will prepare a Project Report, negotiate with a commercial bank and financial institution for working capital and term loan, buy plant and machinery, start production and quality control and ultimately market his products and service to collect more money than he invested and thereby develops a feeling of great achievement which he will share with his family, friends and associates. © David C. McClelland, a Harvard Psycholog! of motivation by identifying three types of basic motivating needs, © He classified these needs as (i) need for pow Puan (QAFF), and (ii) need for Achievemreni(n/ACH), (PWR), (i) need for afiiation © Considerable research has been done by M! to three socially-developed motives in and achievement, ist, has contributed to the understanding McClelland and his associates with respect Sin different individuals. i.e., affiliation, power his associates have done substantial research, exes ie hare ca oa because any organized activity represents e Working together for achieving organiz a 4 d ig tog gani ee for achievement is of great importance. e naeieaional als ie PME-28PROIFCT MANAGEMENT AND ENTREE PRENEURSHIP. 2m Part: | ; : McClelland’s N-Arch theory of achievement can be very aptly used for studying entrepreneurial motivation because in any society business achievement bestows a special position and respect to a young entrepreneur in the field of clamber of commerce, delegation 10 Govt, social status in the matrimonial market, high position in club, association society, institute etc. These things normally casily motivates a young entrepreneur towards business development, doing hard work, taking risk, earning more and more money and enjoying higher and higher social and economic status. PME-29INFORMATION 4. MSME-DI is a/ an [MODEL QUESTION} a) All India level organization b) State Level organization ©) District Level organiz: 4) Block Level Organization Answer: (a) 2. The institution that is related with the growth of Khadi industries: [MODEL QUESTION] a) KIDS b) KvIC ¢) KBC d) KMDC Answer: (b) 3. National Institute for Entrepreneurship and Small Business Development provides [MODEL QUESTION] a) seed capital for entrepreneurs b) start up finance for entrepreneurs ¢) training to entrepreneurs 4d) all of these Answer: (c) 4. Small Industries Service Institute (SISI) was established is _ [MODEL QUESTION] a) 1956 b) 1952 c) 1982 ) 1990 Answer: (a) 5. EXIM (Export & Import Bank of India) started functioning from [MODEL QUESTION] a) March 1982 b) May 1990 c) July 1996 d) May 1993, Answer: (a) 6, Small scale industry is usually [MODEL QUESTION] a) Labour intensive b) Capital intensive c) Technology intensive d) None of these Answer: (2) 7. Khadi and Village Industries Corporation is [MODEL QUESTION] a) District level institution b) All India institution c) State level institution 4) Village level institution Answer: (b) 8. Khadi and Village Industries Commission is alan a) All India Institution c) District Level In: Answer: (a) [MODEL QUESTION] b) State Level Institution 4) Village Level Institution ition PME-30PRC IREPRENEURSHIP 9, EDP is meant for creating — a) managers ) motivating and guiding people “Answer: (©) MODEL b) busineeamen QUESTION] d) none of these 40. The full form of “SSI” is a) Small Scale Industries [MODEL QUE: , Ss ¢) Small Sector Industries i social Sector Industries mony Answer: (8) !) Small Size Industries Short Answer Type Questions 4, What s Crowdsourcing. ieener [MODEL QUESTION] e The term ‘crowdsourcing’ was origina “wit EE eand atin oe Corie albeachgiand cor | «Crowdsourcing in a process in which companies eae pas of th a processes and fall back on a community of thousands of people (ihe nia Prindividual service providers. people (he crowd) insicad + Crowdsourcing is used as a collective intellectual gathering of information that Comes from the public and is then used to complete a business-related task. " e People involved in crowdsourcing sometimes work as paid freelancers while others perform small tasks on a voluntary basis «Owe of the best known example is the free online encyclopedia Wiki intellectual contribution of research, writing and editing, ipedia, with 2. What is Bootstrapping? [MODEL QUESTION] Answer: aessootstrapping describes a situation in which an entreprerir starts a company with litte capital, relying on money other than outside investments. «Bootstrapping places all the financial risk on the entrepreneur. Extremely limited resources can inhibit growth, prevent promotion ‘and even undermine the quality and integrity of the product or service that is envisioned. 1 over all’ the decisions about the «The entrepreneur is able to maintain total contre : business, and all the energy goes 10 the product itself, not into pitching venture capitalists and other potential sources of capital investment. [MODEL QUESTION] 3. What do you mean by ‘Angel financing’? Answer: / © The term ‘Angel’ originated in the early 1900°s to describe wealthy businessman. © Angel investors are self-made-net-worth individuals represent an essential source of funding for early stages, igh-risk ventures. Angel investors are estimated to provide 90% of all seed and start-up capital. PME-31© Angel financers usually invest in ventures related to the fields in which they have been successful themselves. They maintain close contact with the ventures they finance and can provide first time entrepreneurs with invaluable know-how as well as capital. Angel investors often work in groups to improve the efficiency of their due diligence and to allow them to complete larger deals. 4, What is SIDBI? State the functions of SIDBI. [MODEL QUESTION] Answer: 1 Part: SIDBI © SIDBI (Small Industries Development Bank of India) is a development financial institution, formed in 2" April, 1990, headquartered at Lucknow and having its offices all over the country. State Bank of India is the largest individual shareholder of SIDBI followed by the Government of India and LIC (Life Insurance Corporation of India) 2™ part: Functions of SIDBI are stated as under: © SIDBI is the primary financial institution for promoting, developing and financing MSME (Micro, Small and Medium Enterprise) sector. SIDBI helps MSMEs in acquiring the funds they require to grow, market develop and commercialize their technologies and innovative products. The Bank provides several schemes and also offers financial services and products for meeting the individual's requirement of various businesses. © Besides, SIDBI covers mainly 6 products under Direct loans, namely — > SIDBI Make in India Soft Loan Fund for micro, small and Medium Enterprises (SMILE). ‘Smile E juipment Finance (SEF), Loans under partnership with Original Equipment Manufacturer (OEM). Working Capital (cash credit). SIDBI Trader Finance Scheme (STFS), and Loan for purchase of Equipment for Enterprises Development (SP bhide D). e Questions 1. Discuss the role of Government in promoting entrepreneurship. [MODEL QUESTION] Answer: Government has a big role in developing éntrepreneurship in the country as well as every state for various reasons: a) Govt. can create jobs for a maximum of 2 — % people depend on themselves cither for a professional carrier or for creating self - employment along with job opportunities of hundreds and thousands of people. PME-32 5% of the young people, balance 95 -98PROIECE MANAGEMENT AND EN TREPRENBURSHIP b) For this govt. entrepreneurs ey form of “Industrial estates” where 6) Government must and various forms of Gov 1 ova : s. Government loans cash, kind tefuandable and as p the project or entrepreneurship basis or on interest create problems for entrepreneurs on the beinning 4) Bank loans also should be facilitated by Gave ‘ated by Government so that govt at times ea guarantor for the loan, ene ines an she echnology should be made available by Government cither from its own sources isting Government factories or from universities and consulting firme 1) Marketing facilites should be created by Government for marketing various products like agricultural, mineral, metallurgical, chemical, glass and ceramic, cotton textle, electronic computer and various services and financial products, g) Government should also help the new entrepreneurs to import a products to create foreign market as well as improve their other products with fo components. h) Government should offer training facilities to prospective entrepreneurs in technology, labour, finance, marketing, computer as well as Business Management. i) Government should offer subsidy as well as various facilities through SISI, C &SSI, KVIC, SIDBI, WBFC, WEBCON, and WBSIDC. j) Above all govt. role is to promote, develop and when they approach the Government, they should co-operate in ail possible ways. a big role ¢ nd, building, w, offering infrastructure to all ther separ tilable at one place, ‘mount with different interest prospective ly or in the ‘ater, clectricity ete facilities are we for loan of different ilities and conditions and subsidies, non Mt loans can be given both in rant. ‘This should be wvailable on nd hypothecation basis which bey . Dis the role played by the support institutions in promoting entrepreneurship development in india. [MODEL QUESTION] Answer: ; , ch An entrepreneur should not only have his own capability to build up an enterprise, he must have knowledge and information about the world, his country, state, district, a and his line of business. For instance if an entrepreneur is making break-fast foo materials he should know who else is making similar products in his area or i ie dist or state, the quality, the price structure, packaging etc. of these products, delivery distribution system etc. , | ; yes & In addition he should also have the full information on the Government sche Seana ranean’ Projects, banks financing projects, SISI & C & SSIs assistance pala feet % developing, promoting, and marketing & financing of SMEs. The these relate to: | | 4) SISI: Small Industries Service Institute fering carey Preparation & vetting, training in class & workshop, etc, 4) C&SSI: Cottage & Small Seale Indu ba have many small schemes of loan for land, buildi 9. NSIC: For hire-purchase of machines. pM ancy, Project Report dation to the Bank ries, department of State Government aa ing, plant, machinery, training, etc. 33d) SIDBI: Small Industries Development Bank of India, for development of small industries as Bank has been set up. ©) State Finance Corporation: For fi lakhs is given, f) Web Con.: West Bengal Consultancy Organization, Set up a consultancy organization by State Government & Reserve Bank g) PMRY: Prime Minister's Rojgar Yojana ; h) NABARD: National Bank for Agriculture & Rural Development Project i) SHG: Self Helf Group, for loan to self-help group. j) Industrial Estate (WBSIDC): West Bengal Small Industries Development Corporation, for ready Shed, Power, Water to small scale industry. k) Consulting Engineering Group: Small Companies who syndicate loans from Bank and prepares project report, financial project ete. 1) ~WBFC: West Bengal Finance Corporation Alll these information must be at the finger tips of all entrepreneurs. ancing small scale industries loan up to Rs. 50 3. Focus on the role of khadi and Village Industries in Entrepreneurship scenario. Specify the functions of KVIC regarding this context. [MODEL QUESTION] Answer: 1* part: Role of khadi and Village Industries Mahatma Gandhi, the so called father of the Nation recommended Khadi & Village industries for the development of Rural India. This idea is very much prevalent and the Government have helped to set up a Commission or Board for the development of Khadi i.e., hand over cloths by Charka and other rural and village industries like silk, terra cotta, Bee keeping etc. for creating self-employment for educationally and economically backward boys and girls of the rural areas. Wardha in Maharastra has been the head quarters for KVIC run by a Commission which has now got at least one branch in all states having a large marketing outlet for silk, khadi clothes, honey, various garments, ghee etc. Though this line is not comparable to computer, information technology and electronic line, it has a great self-employment potential individually or by forming SHG (Self help group or cooperatives) and investment for such products is comparatively low. 2" part: Some of the major functions of KVIC are: 1. To plan and organize training of persons employed or employment in Khadi and Village Industries. . 2. To build up reserves of raw materials and supply them to persons engaged or likely to be engaged in production of handspun yarn of Khadi or Village Industries at such rates as the commission may decide. ~ To encourage and assist in the creation of processing of raw materials or semi finished production and marketing of Khadi or produc desirous of seeking common service facilities for the goods and for otherwise facilitating Of village Industries. PME-34