ENTREPRENEURSHIP DEVELOPMENT (B.

COM/ BBA)

2 MARKS QUESTIONS & ANSWERS

Entrepreneur
An entrepreneur is a person who setup a business.
He organizes, manages and assume risk of a business or enterprise.
Business entrepreneur
He is an individual who discover an idea to start a business.
Trading entrepreneur
He is an entrepreneur who undertakes trading activities.
Industrial entrepreneur
He is an entrepreneur who undertakes manufacturing activities.
Corporate entrepreneur
He is a person who demonstrates his skill in organizing and managing
a corporate undertaking.
Agricultural entrepreneur
They are entrepreneurs who undertake agricultural activities.
Technical entrepreneur
They are extremely task oriented. They are craftsman type.
Non-technical entrepreneurs
These entrepreneurs are not concerned with the technical aspects of
the product.
Professional entrepreneurs
He is an entrepreneur who starts business unit but not carry on the
business for long period.
Pure entrepreneur
It is a type of entrepreneur; they believe in their own performance
while undertaking business activities.
Induced entrepreneur
He is induced to take up an entrepreneurial activity with a view to
avail some benefits from the government.
Motivated entrepreneur
These entrepreneurs are motivated by the desire to make use of
their technical and professional experts and skills.
Spontaneous entrepreneur
They start their business out of their natural talent.
Modern entrepreneur
He is an entrepreneur who undertakes those venture which suits the
modern marketing needs.
Classical entrepreneur
He is one who develops a self-supporting venture for the satisfaction
of customers need.
Novice
A novice is someone who has started his or her first entrepreneurial
venture.
Serial entrepreneur
A serial entrepreneur is someone who is devoted to one venture at a
time, but ultimately starts many.
Portfolio entrepreneur
He is started and run a number of business at the same time.
Innovative entrepreneur
He is an entrepreneur who has to introduce new goods, methods,
production etc.
Adoptive entrepreneur
This type of entrepreneur do not innovate new changes themselves.
It is also called imitative entrepreneurs because they imitate
technology innovated by others.
Fabien entrepreneurs
This is a traditionally bounded entrepreneurs. They are shy and lazy.
They try to follow footsteps of their predecessors.
Drone entrepreneurs
Drone entrepreneurs are those who refuse to adopt and use
opportunities to make changes in production.
Commercial entrepreneur
They are those entrepreneurs who starts business entrepreneurs for
their personal gain.
Social entrepreneur
Social entrepreneurs are those who starts business not for making
profit, but for providing social welfare.
Entrepreneurial competency/Traits
Entrepreneurial competency means the knowledge, skills, abilities,
values, attitudes, personality and expertise that lead to
entrepreneurial action.
Entrepreneurship
It is the process of creating value by bringing together unique
package of resources to exploit an opportunity.
Intrapreneur
It refers to an employee of the organisation who is in charge of
undertaking innovations in product, service, process, etc.
Women Entrepreneurs/Entrepreneurship
A group of women who initiate, organize and operate a business
enterprise is called women entrepreneurship.
Mahila Udyan Nidhi (MUN)
It is a scheme to help women entrepreneurs. This scheme is for
women empowerment. It provides credit facilities and financial
assistance to women entrepreneurs.
Entrepreneurial development Programme (EDP)
Entrepreneurship Development Programme (EDP) is a programme
which helps in developing entrepreneurial abilities.
TRYSEM
It stands for Training of Rural Youth for Self-Employment. It provides
technical skills to rural youth. It helps rural women to set up their
own micro enterprises.
Short term finance
It refers the funds required to meet the commitment during the
shorter period of time. It is used to meet temporary working capital
of the enterprise.
Medium term finance
It refers the funds required to meet the commitment during medium
period of time. It refers the funds required to meet permanent
working capital needs.
Long term finance
It refers the funds required to meet the commitment during longer
period of time. It is required to purchase fixed assets, establishing a
new business etc.
Working capital support
Working capital refers to the capital required to meet day to day
expenses of the business enterprise. Working capital support fulfilled
through loans from commercial banks.
Fixed capital support
Fixed capital refers to capital required to purchase fixed assets.
Fixed capital needs could be fulfilled through market borrowings and
long term loans.
District Industries Centre (DIC)
The district industries programme was started by the central
government in 1978 with the objective of promoting the small, tiny,
cottage and village industries in a particular area and to provide
necessary services to them.
Small Industrial Development Corporation (SIDCO)
It is a government owned public sector corporation, was established
in 1975 for the development and promotion of small scale industries
in Kerala.
National Small Industries Corporation (NSIC)
It was set up in 1995 to provide machinery to small scale units on
hire purchase basis and to assists this units in obtaining orders from
government departments and offices.
Small Industrial Development Bank of India (SIDBI)
It is national institution for promotion, financing and development of
small scale industries. It was established on April 2, 1990.
Khadi Village Industry Commission (KVIC)
It was established by an act of parliament in 1956, with the objective
of promoting khadi and village industries in the rural areas.
Small Industries Service Institute (SISI)
SISIs have been established in each states in 1966 as agencies of
SIDO. The objective is to develop small scale industries.
Kerala Industrial Technical Consultancy Organisation (KITCO)
This is the first technical consultancy organisation in India. It was
established in 1972.
Science and Technology Entrepreneurship Development Project
(STEDP)
It was established in 1985 with the objective of encourage
entrepreneurship amongst the science and technology persons and
too specifically in the industrially backward areas of the country.
National Entrepreneurship Development Board (NEDB)
It was formed in 1983. It acts as an apex body of entrepreneurship
development.
National Institute for Entrepreneurship and Small Business
Development (NIESBUD)
It is an apex body established in 1983 by the ministry of industries,
Government of India for coordinating, training and overseeing the
activities of various institutions, agencies engaged in
entrepreneurship development in the area of small industries.
Incentives
It is a financial and promotional assistance provided by the
government to the industries for boosting up industrial development
in all regions particularly in backward areas.
Subsidy
Subsidy is a single lump sum money that is given by a government to
an entrepreneur to cover the cost.
BOUNTY
It is a bonus or financial aid given to an industry to help it to compete
with other units established in a country.
MSME
MSME stands for micro, small and medium enterprises. These is an
important sector for the Indian economy and have contributed
immensely to the country’s socio-economic development.
Micro enterprise
A micro enterprise is a unit where the investment is up to one crore
and annual turnover is up to 5 crore.
Small enterprise
A small enterprise is one where the investment is up to ten crore and
annual turnover is up to fifty crore.
Medium Enterprise
A medium enterprise is the one where investment is up to twenty
crores and the turnover is up to hundred crores.
Ancillary units
Ancillary industries are those units which provide inputs to other
industries. These are engaged in the manufacture of parts,
components, and light engineering products.
Export oriented unit
These units are those SSI units which exports at least 30 percent of
its annual production by the end of the third year of commencement
of production.
Credit Guarantee Fund Trust Scheme for MSMEs (CGTMSE)
This scheme was launched on 30th August, 2000. This scheme is to
give credit guarantee to financial institution that provide loans to
SMEs and MSMEs.
Industrial Estates
It is a place where necessary infrastructure facilities are made
available to entrepreneurs.
General type industrial estates
These provide accommodation to a wide variety and range of
industrial concerns.
Special type industrial estates
These types of industrial estates constructed for specific industrial
units.
Ancillary industrial estates
In such industrial estates only those small scale units are housed
which are ancillary to a particular large industry.
Functional industrial estate
Industrial unit manufacturing same products are usually housed in
these industrial estates.
Workshop bay
These types of industrial estates are constructed mainly for very
small firms engaged in repair works.
Green channel
MSME green channel refers to a fast-track clearance system for
MSMEs to get environmental approvals for their projects, allowing
them to start operations quickly without compromising on
environmental standards.
Bridge Capital (Bridge finance)
It is a temporary funding that helps a business cover its costs until it
can get permanent capital from equity investors or debt lenders.
Seed Capital (Seed capital assistance)
It is the money raised to begin developing an idea for a business for a
business or a new product. It is the initial money required to start a
new business.
Venture capital
It is a form of private equity and a type of financing that investors
provide to startup companies and small businesses that are believed
to have long term growth potential.
Business incubation
It is a public or private, entrepreneurial and social development
process designed to nurture business ideas through a comprehensive
business support program, helps to establish and accelerate growth
and success.
Margin money scheme
It is a scheme to assist deserving entrepreneurs in setting up small
scale industrial units by way of providing soft loan.
Single window system
It is a scheme introduced by the government of Kerala with the aim
of simplifying the procedures in connection with the registration of
small business for getting financial assistance, raw material etc.
Sick unit
A sick unit is one which failed to generate an internal surplus on a
continuous basis and dependent for its survival upon frequent
infusion of funds.
Udyog Aadhar Memorandum (UAM)
UAM is a one page registration form which constitutes a self-
declaration format under which the MSME will self-certify its
existence, bank account details, promoter aadhar details and other
information required.
Entrepreneurial Environment
It refers to overall economic, socio cultural and political factors
influencing entrepreneurial activities.
Entrepreneurial Ecosystem
These are peculiar system of interdependent factors and relations
directly and indirectly supporting the creations and growth of new
ventures.
Generation of Project Ideas
It is the process of collection, completion and analysis of economic
data for the purpose of finding out possible opportunities for
investment.
Market and Demand analysis
It is a study of market for the product and estimate the total demand
Feasibility Study
It is an assessment of the practicality of a proposed project. It judges
cost and value of a proposed project.
Technical feasibility (Technical analysis)
It is the process of proving that concept is technically possible.
Financial feasibility (Financial analysis)
It is a process of obtaining relevant information about project in
order to ascertain its financial viability.
Economic feasibility (Economic analysis)
Economic feasibility is the process of determining whether a new
venture is worth the cost and time investment.
Sensitivity analysis
It is a type of analysis helps in studying the impact of crucial variables
like raw materials, sales volume, sales price etc.
Social cost benefit analysis
It is a systematic and cohesive economic tool to survive all the
impact caused by an urban development project.
Environmental impact assessment
It is the assessment of the environmental consequences of a plan,
policy, program or actual projects prior to the decision to move
forward to the proposed action.
Foreign Collaboration
It is an agreement or contract between two or more companies from
different countries for mutual benefits. It includes technical
collaboration, marketing collaboration, financial collaboration,
consultancy collaboration.
Forms of Foreign collaboration
 Collaboration between Indian and foreign private companies
 Collaboration between Indian government companies and foreign
private companies
 Collaboration between Indian government and foreign
government
Export Promotion Capital Goods Scheme (EPCG scheme)
This is a scheme which enables an importer to import capital goods
at zero rates of customs duty.
Export promotion capital goods
These are capital goods used in production of goods which are
exported to other countries.
Foreign Investment Promotion Board (FIPB)
It was a national agency of government of India with the remit to
consider and recommend foreign direct investment.
Software Technology park (STP)
STP scheme is an export oriented scheme for the development and
export of computer software, communication links and physical
media.
Electronic Hardware Technology Park (EHTP)
EHTP scheme is an export oriented scheme for the development and
export of electronic hardware.
Location Decision
It means deciding a suitable location, area or place where the
business starts functioning.
Ideal location
It is one that permits the lowest unit cost in the production and
distribution of a product and service.
Project
A project is defined as a sequence of tasks that must be completed
to attain a certain outcome. It simply refers to any investment
opportunity which is to be exploited for profit.
Project identification
Project identification is the process in the initiating phase of project
life cycle.
Project appraisal
It is the searching, scrutiny, analysis and evaluation of market,
technical, financial and economic variables. It examines the viability
of the project.
Project report
A project report is a document which provides details on the overall
picture of the proposed project.
Break Even Point
It is the point at which no profit no loss. It is the level of production
at which the cost of production equal to the revenue for a product.

RAHUL MURALI
JUBAIR MAJEED

8089778064/ 9947050644(WhatsApp only)