Chapter 9 MSME and Business Entrepreneurship – Class 11 Business Studies Notes

Class 11 Business Studies Notes for Chapter 9 MSME and Business Entrepreneurship

Get Class 11 Business Studies Notes, Questions and Practice Papers for Chapter 9 MSME and Business Entrepreneurship. Candidates who want to pass Class 11 with a good grade can use this article for Notes, Questions, and Practice Papers.

We have provided access to the Class 11 Business Studies Notes, Important Questions and Practice Paper on Chapter 9 MSME and Business Entrepreneurship. You can practise the questions and check your answers using the solutions provided after each question.

Chapter Definitions and Short Notes

Chapter 9 MSME and Business Entrepreneurship – Short Notes and Definitions

Micro, Small and Medium Enterprises (MSMEs) in India

Micro, Small, and Medium Enterprises (MSMEs) are crucial components of India’s economic framework, contributing significantly to its industrialization and economic prosperity.
They form a large part of the country’s industrial scenario by offering extensive employment opportunities, playing a vital role in GDP and exports, and serving as ancillary units for large industries.
These enterprises are diverse, ranging from traditional to modern industries, and are categorised into eight subgroups, including handlooms, handicrafts, and small-scale industries. MSMEs are known for their entrepreneurial spirit, utilisation of local raw materials, and indigenous skills, fostering grassroots innovations and entrepreneurship development across the nation.

Short Pointers:

  • MSMEs play a crucial role in India’s economic growth, contributing 29.7% to the GDP and 49.66% to exports.
  • Second largest employment provider after agriculture, employing around 60 million people through 28.5 million enterprises.
  • Acts as ancillary units to large industries, enhancing the value chain and promoting self-reliance and rural industrialisation.
  • The sector is diverse, with both traditional and modern industries under its umbrella, including handlooms, handicrafts, and small-scale industries.
  • Recognized for fostering entrepreneurship and innovation, leveraging local raw materials and skills for product development ranging from simple goods to sophisticated items.
  • Encouraged by the government in both pre and post-reform periods to achieve objectives of national development and rural industrialization.
  • Attracts global companies for strategic partnerships, benefiting from India’s niche in low-cost manufacturing and local skills.

Definition and Importance of MSMEs in India

India defines Micro, Small, and Medium Enterprises (MSMEs) by government criteria, including plant and machinery investment and business turnover. This approach considers India’s economy, with scarce capital and abundant labour. An expanding service sector, including Small Scale Industries (SSI) and MSME-related service enterprises, is served by the classification. The 2006 MSME Development (MSMED) Act addressed globalisation and technological advancements. This law unifies MSMEs’ definition, credit availability, marketing, and technology upgradation. It includes medium-sized and service-oriented businesses.

Short Pointers:

  • MSMEs in India are defined by the government based on investment in plant and machinery and business turnover.
  • This definition reflects India’s socio-economic conditions of scarce capital and abundant labour.
  • The service sector’s growth led to the inclusion of both SSI and service enterprises under the MSME category.
  • Globalisation and the need for technological advancements necessitated a unified legal framework for MSMEs.

The MSMED Act of 2006 addresses issues related to MSME definitions, credit, marketing, and technology upgradation, covering both manufacturing and service sectors. 

 The Role of Small Scale Industries (SSI) and MSMEs in India

Small Scale Industries (SSIs) and Micro, Small, and Medium Enterprises (MSMEs) play a pivotal role in the socio-economic development of India. They contribute significantly to the GDP, accounting for 95% of industrial units and nearly 40% of the gross industrial value added in the country.
As the second largest employer after agriculture, these industries generate more employment per unit of capital invested, making them ideal for India’s labour-abundant and capital-scarce economy. SSIs and MSMEs supply a vast array of products, including both everyday consumer goods and sophisticated engineering products.
They support balanced regional development by utilising local resources and simple technologies, which allows for their distribution across the country without locational constraints. Furthermore, these industries foster entrepreneurship by enabling individuals to transform their skills and ideas into businesses with minimal capital.
They also benefit from low production costs due to lower establishment and operational expenses. The flexibility of SSIs and MSMEs facilitates quick decision-making and customised production, enhancing their competitiveness and ability to maintain personal relationships with customers and employees.

Short Pointers:

  • SSIs and MSMEs account for 95% of industrial units in India, contributing about 40% to the industrial sector’s value-added and 45% to exports.
  • They are the second-largest employment source in India, offering more jobs per unit of capital than larger industries.
  • Provide a wide range of products, from consumer goods like soaps and garments to sophisticated items like electronics and pharmaceuticals.
  • Promote balanced regional development by being spread across the country, utilising local materials and labour.
  • Encourage entrepreneurship with minimal capital investment and formalities.
  • Enjoy low production costs due to reduced establishment and operational expenses, enhancing their competitive edge.
  • Capable of quick decision-making due to their small size, allowing for timely capitalization on business opportunities.
  • Suited for customised production due to their flexible production techniques.

Problems Facing Small Scale Industries (SSI) and MSMEs

Small Scale Industries (SSIs) and Micro, Small, and Medium Enterprises (MSMEs) in both urban and rural areas face several operational and structural challenges that hinder their full potential.
These challenges arise due to their limited scale of operations, difficulties in accessing finance, inability to adopt modern technology, and issues in procuring raw materials. The location of these enterprises often comes with less developed infrastructure, contributing to their logistical and operational difficulties.
Furthermore, SSIs and MSMEs struggle with managerial inefficiencies, reliance on outdated technology, and poor quality of output. Financial constraints are a significant barrier, affecting their ability to sustain and grow. Exporting units within this sector face additional problems, such as inadequate information on foreign markets, lack of market intelligence, exposure to exchange rate fluctuations, adherence to international quality standards, and securing pre-shipment finance.

Short Pointers:

  • SSIs and MSMEs face operational and structural challenges due to their limited scale.
  • Access to finance is a major hurdle, affecting their ability to upgrade technology and procure materials.
  • Infrastructure issues, especially in remote locations, impact their operational efficiency.
  • Managerial skills are often lacking, coupled with reliance on traditional technology and issues with product quality.
  • Exporting units face challenges like insufficient data on foreign markets, exchange rate fluctuations, and meeting international quality standards.
  • Financial constraints limit their growth potential and ability to compete on a larger scale.

Please log in to view this content.

NCERT Solutions

NCERT Solutions for Class 11 Business Studies – Chapter 9 MSME and Business Entrepreneurship

 Very Short Answer Questions

  1. Which year the MSMED Act passed?

Answer: The Micro, Small and Medium Enterprises Development (MSMED) Act was passed in 2006.

  1. What is the micro enterprise?

Answer: A micro enterprise is a small business defined by low investment in plant and machinery and modest turnover.

  1. What is a cottage industry?

Answer: Cottage industries are small-scale enterprises where products are crafted by hand, using local materials and traditional skills.

  1. What is meant by Village and Khadi Industry?

Answer: Village and Khadi Industry refers to small-scale enterprises using traditional skills and local materials to produce Khadi textiles and other village-based products.

  1. Give any two characteristics of entrepreneurship development.

Answer: Entrepreneurship development is systematic and purposeful, requiring skills and competencies that are learned through experience and training, focusing on creating value and innovation.

Short Answer Questions

  1. What is MSME?

Answer: Micro, Small, and Medium Enterprises (MSMEs) are crucial to the economic and industrial development of India. They significantly contribute to the nation’s GDP and exports, and are the second-largest employers after agriculture. MSMEs not only foster entrepreneurship and innovation using local skills and materials but also play a vital role in rural industrialisation and achieving self-reliance. The government recognizes their potential and supports them through various phases of economic reforms. Moreover, MSMEs produce a diverse range of products, from basic consumer goods to sophisticated items, enhancing India’s manufacturing capabilities on a global scale.

Mindmap to remember this answer:

  • Definition: Small to medium size enterprises; crucial for economic growth.
  • Contributions:
      • 29.7% of GDP.
      • 49.66% exports.
      • Employment for 60 million people.
  • Roles:
    • Entrepreneurship and innovation.
    • Rural industrialisation and self-reliance.
    • Diverse product range.
  • Government Support: Encouragement in pre- and post-reform periods.
  • Products: From simple consumer goods to complex manufactured items.
  • Significance: Second largest employer; vital for balanced regional development.

Please log in to view this content.

MCQ Questions

Chapter 9 MSME and Business Entrepreneurship – MCQ Questions

MCQ Questions

  • What is the contribution of MSMEs to India’s GDP?
A) 19.7%B) 29.7%
C) 39.7%D) 49.7%

Answer: B) 29.7%

  • Which sector offers the most employment after agriculture in India?
A) ManufacturingB) MSME
C) ServiceD) IT

Answer: B) MSME

  • What is the role of MSMEs with respect to large industries?
A) CompetitorsB) Customers
C) Ancillary unitsD) Suppliers

Answer: C) Ancillary units

  • Which Act, effective from October 2006, provides a legal framework for MSMEs in India?
A) MSMED Act, 2006B) Indian Penal Code
C) Industrial Dispute Act, 1947D) Companies Act, 2013

Answer: A) MSMED Act, 2006 

 What percentage of exports do MSMEs contribute in India?

A) 29.66%B) 39.66%
C) 49.66%D) 59.66%

Answer: C) 49.66%

  • MSMEs are primarily categorised into how many subgroups?
A) 4B) 6
C) 8D) 10

Answer: C) 8

  • Which of the following is not a problem commonly faced by MSMEs?
A) High cost of productionB) Inadequate managerial skills
C) Poor quality and traditional technologyD) Non-availability of adequate finance

Answer: A) High cost of production

  • The definition of MSMEs in India is based on which parameters?
A) Number of employees and office sizeB) Investment in plant and machinery and turnover
C) Profit margins and export capacityD) Business model and market share

Answer: B) Investment in plant and machinery and turnover

  • Which of the following is not part of the Intellectual Property Rights recognized in India?
A) CopyrightB) Patent
C) TrademarkD) Smell and taste trademarks

Answer: D) Smell and taste trademarks

Please log in to view this content.

Very Short Answer Type Questions

Chapter 9 MSME and Business Entrepreneurship – Very Short Answer Type Questions

  1. What percentage of GDP do MSMEs contribute to?
    Answer: MSMEs contribute 29.7% to India’s GDP.
  2. How many people are employed by MSMEs in India?
    Answer: Around 60 million people are employed by MSMEs in India.
  3. How many enterprises are categorised under MSMEs?
    Answer: There are approximately 28.5 million enterprises categorised under MSMEs.
  4. Name two types of industries included in the MSME sector.
    Answer: MSME sector includes traditional industries like handicrafts and modern small industries.

  1. What is the definition of MSME according to the Government of India?
    Answer: MSMEs are defined by their investment in plant and machinery and turnover.
  2. What is the purpose of the MSMED Act, 2006?
    Answer: The purpose of the MSMED Act, 2006 is to provide a single legal framework for MSMEs addressing issues like credit and technology upgradation.
  3. What significant roles do MSMEs play in the socio-economic development of India?
    Answer: MSMEs play significant roles in employment generation, promoting balanced regional development, and fostering entrepreneurship.
  4. What percentage of industrial units does the small industries sector comprise in India?
    Answer: Small industries make up 95% of all industrial units in India.
  5. What is the primary benefit of MSMEs in terms of employment?
    Answer: The primary benefit of MSMEs in terms of employment is their labour-intensive nature, creating more jobs per unit of capital invested.
  6. Name a sophisticated item produced by MSMEs.
    Answer: MSMEs produce sophisticated items like electronic goods and pharmaceuticals.
  7. What challenges do MSMEs face in terms of raw material procurement?
    Answer: A major challenge for MSMEs in raw material procurement is the high cost and low bargaining power due to small purchase quantities.

Please log in to view this content.

Short Answer Type Questions

Chapter 9 MSME and Business Entrepreneurship – Short Answer Type Questions

  1. Define Micro, Small, and Medium Enterprises (MSME) and discuss their contribution to the Indian economy.
    Answer: Micro, Small, and Medium Enterprises (MSME) are crucial for the Indian economy as they significantly contribute to industrialization, employment, and exports, promoting economic prosperity through a broad entrepreneurial base and utilisation of local resources.

Mindmap to remember this answer:

  • Key Terms: MSME, industrialization, employment, exports
  • Contributions: Economic prosperity, entrepreneurial base, local resources

  1. How do MSMEs contribute to India’s GDP and exports?
    Answer: MSMEs contribute significantly to India’s economy by making up 29.7% of the GDP and accounting for nearly half of the exports at 49.66%. They enhance economic resilience by promoting local entrepreneurship and using indigenous resources efficiently.

Mindmap to remember this answer

  • GDP Contribution: 29.7%
  • Exports: 49.66%
  • Economic Impact: Enhance resilience, promote local entrepreneurship
  1. Explain the role of MSMEs in employment generation compared to other sectors.
    Answer: Compared to other sectors, MSMEs are vital for employment in India, providing jobs to about 60 million people through 28.5 million enterprises. They are second only to agriculture in employment generation, offering more job opportunities per unit of capital invested than larger industries.

Mindmap to remember this answer

  • Employment Numbers: 60 million people
  • Comparison: Second to agriculture
  • Job Efficiency: More jobs per capita than large industries
  1. Describe the various subgroups within the MSME sector as outlined in the textbook.
    Answer: The MSME sector in India includes both traditional and modern small industries, divided into eight subgroups: handlooms, handicrafts, coir, sericulture, khadi and village industries, small scale industries, and powerlooms. Each subgroup contributes uniquely to the sector’s diversity and strength.

Mindmap to remember this answer

  • Subgroups: Handlooms, handicrafts, coir, etc.
  • Categories: Traditional and modern industries
  • Contribution: Diverse strengths

Please log in to view this content.

Case Based Questions

Chapter 9 MSME and Business Entrepreneurship – Case Based Questions

 Micro, Small and Medium Enterprises (MSMEs) in India

Case:
Raj Enterprises is a micro-scale unit that produces traditional handicrafts and employs local artisans in a rural area. Despite its small size, the enterprise has significantly contributed to the local economy. What role does Raj Enterprises play in the local industrial ecosystem, and what values does it promote?

Answer:
Raj Enterprises plays a crucial role in the local industrial ecosystem by utilising local raw materials and indigenous skills to produce traditional handicrafts. This not only supports local artisans but also contributes to the local economy by generating employment and promoting rural industrialization.

Values promoted by Raj Enterprises:

  1. Employment Generation: Providing jobs to local artisans.
  2. Economic Contribution: Contributing to the local economy through production and sales.
  3. Promotion of Indigenous Skills: Leveraging local raw materials and traditional skills.
  4. Rural Development: Enhancing rural industrialization and self-reliance.
  5. Cultural Preservation: Preserving and promoting traditional handicrafts.

 Definition and Importance of MSMEs in India

Case:
XYZ Services is a small enterprise that provides IT solutions and services. It operates under the definition provided by the MSMED Act of 2006. Discuss the significance of the MSMED Act for XYZ Services and the values it embodies.

Answer:
The MSMED Act of 2006 is significant for XYZ Services as it provides a unified legal framework that addresses definitions, credit availability, marketing, and technology upgradation for MSMEs. This act supports XYZ Services in accessing finance, adopting modern technology, and competing in the market.

Values embodied by the MSMED Act:

  1. Legal Clarity: Provides a clear definition and regulatory framework for MSMEs.
  2. Financial Support: Facilitates better access to finance.
  3. Technological Advancement: Encourages the adoption of modern technology.
  4. Market Competitiveness: Enhances the ability to compete in the market.
  5. Inclusive Growth: Supports the growth and development of service-oriented MSMEs.

The Role of Small Scale Industries (SSI) and MSMEs in India

Case:
ABC Industries is a small-scale manufacturing unit that produces consumer goods and operates in a semi-urban area. Explain how ABC Industries contributes to regional development and entrepreneurship. What values are communicated by such contributions?

Answer:
ABC Industries contributes to regional development by utilising local resources and employing local labour, which helps in spreading industrial activities across the semi-urban area. The unit also promotes entrepreneurship by enabling individuals to start and run businesses with minimal capital investment.

Values communicated by ABC Industries:

  1. Regional Development: Utilisation of local resources and spreading industrial activities.
  2. Employment Generation: Providing jobs to the local population.
  3. Entrepreneurship Promotion: Facilitating the start and growth of new businesses.
  4. Product Diversity: Supplying a range of consumer goods.
  5. Cost Efficiency: Benefiting from low production costs due to reduced establishment and operational expenses.

Problems Facing Small Scale Industries (SSI) and MSMEs

Case:
DEF Handicrafts is a small-scale enterprise facing several operational challenges, including difficulty accessing finance and procuring raw materials. Discuss the major challenges DEF Handicrafts faces and their impact. What values are at risk due to these challenges?

Answer:
DEF Handicrafts faces operational challenges such as limited access to finance, difficulty in adopting modern technology, and issues in procuring raw materials. These challenges hinder their operational efficiency and growth potential.

Values at risk due to these challenges:

  1. Operational Efficiency: Affected by inadequate infrastructure and financial constraints.
  2. Technological Advancement: Limited by the inability to adopt modern technology.
  3. Quality and Competitiveness: Hindered by reliance on outdated technology.
  4. Market Access: Challenged by insufficient information on foreign markets.
  5. Sustainability: Financial constraints affect the growth potential and sustainability of the enterprise.

Please log in to view this content.

 

Value Based Questions

Chapter 9 MSME and Business Entrepreneurship – Value Based Questions

 Micro, Small and Medium Enterprises (MSMEs) in India

Question:
MSMEs play a vital role in India’s economy by contributing significantly to employment and GDP. Discuss how MSMEs support the industrial ecosystem in India. Identify the value demonstrated by MSMEs.

Answer:
MSMEs are a crucial component of India’s industrial ecosystem, contributing significantly to economic prosperity and industrialization. They provide extensive employment opportunities, contributing to GDP and exports, and serve as ancillary units to large industries. MSMEs foster grassroots innovations and entrepreneurship development by leveraging local raw materials and indigenous skills.

Values demonstrated by MSMEs:

  1. Employment Generation: MSMEs employ around 60 million people through 28.5 million enterprises.
  2. Economic Contribution: They contribute 29.7% to the GDP and 49.66% to exports.
  3. Support to Large Industries: Act as ancillary units, enhancing the value chain and promoting self-reliance and rural industrialization.
  4. Entrepreneurial Spirit: Foster innovation and entrepreneurship across the nation.
  5. Diverse Industries: Include traditional and modern industries such as handlooms, handicrafts, and small-scale industries.

 Definition and Importance of MSMEs in India

Question:
The MSME Development (MSMED) Act of 2006 unified the definition of MSMEs and addressed various issues. In this context, explain the significance of the MSMED Act for MSMEs. Identify the value promoted by this Act.

Answer:
The MSMED Act of 2006 is significant for MSMEs as it addresses globalisation and technological advancements, providing a unified legal framework for definitions, credit availability, marketing, and technology upgradation for both manufacturing and service sectors. This Act reflects India’s socio-economic conditions, recognizing the importance of scarce capital and abundant labour.

Values promoted by the MSMED Act:

  1. Unified Legal Framework: Provides clarity and uniformity in the definition and regulation of MSMEs.
  2. Credit Availability: Facilitates better access to finance for MSMEs.
  3. Technological Advancement: Encourages the adoption of modern technology.
  4. Economic Inclusivity: Recognizes the importance of the service sector and includes it within the MSME category.
  5. Support for Growth: Aims to enhance the overall development and competitiveness of MSMEs.

The Role of Small Scale Industries (SSI) and MSMEs in India

Question:
Small Scale Industries (SSIs) and MSMEs play a pivotal role in India’s socio-economic development. Discuss how they contribute to regional development and entrepreneurship. Identify the value communicated by SSIs and MSMEs.

Answer:
SSIs and MSMEs contribute significantly to regional development by utilising local resources and simple technologies, which allow them to be distributed across the country without locational constraints. They support balanced regional development and promote entrepreneurship by enabling individuals to start businesses with minimal capital.

Values communicated by SSIs and MSMEs:

  1. Regional Development: Utilisation of local resources and spreading industrial activities across various regions.
  2. Employment Generation: Providing the second largest source of employment after agriculture.
  3. Entrepreneurship Encouragement: Facilitating the transformation of skills and ideas into businesses.
  4. Product Diversity: Supplying a vast array of products, from consumer goods to sophisticated engineering products.
  5. Cost Efficiency: Benefiting from low production costs due to lower establishment and operational expenses.

Problems Facing Small Scale Industries (SSI) and MSMEs

Question:
Small Scale Industries (SSIs) and MSMEs face numerous challenges that hinder their potential. Discuss the major challenges and their impact on these industries. Identify the values at risk due to these challenges.

Answer:
SSIs and MSMEs face several operational and structural challenges, including limited scale of operations, difficulties in accessing finance, inability to adopt modern technology, and issues in procuring raw materials. These challenges hinder their full potential and impact their operational efficiency.

Values at risk due to these challenges:

  1. Operational Efficiency: Affected by inadequate infrastructure and financial constraints.
  2. Technological Advancement: Limited by the inability to adopt modern technology.
  3. Quality and Competitiveness: Hindered by managerial inefficiencies and reliance on outdated technology.
  4. Market Access: Challenged by insufficient information on foreign markets and meeting international quality standards.
  5. Sustainability: Financial constraints affect the growth potential and sustainability of these units.

Please log in to view this content.

Long Answer Type Questions

Chapter 9 MSME and Business Entrepreneurship – Long Answer Type Questions

  1. Discuss the significant role of MSMEs in contributing to India’s GDP and exports. Provide specific statistics to illustrate their impact on the national economy.
    Answer: Micro, Small, and Medium Enterprises (MSMEs) are pivotal to India’s economy, significantly influencing GDP and export sectors. They contribute approximately 29.7% to the GDP and account for 49.66% of total exports, showcasing their vital role in economic prosperity. By employing around 60 million people, MSMEs not only ensure substantial employment but also boost the economic fabric through diverse and extensive production capabilities. Their strategic function enriches the entrepreneurial ecosystem and leverages local resources, enhancing India’s position in global markets.

Mindmap to remember this answer:

  • Key Contribution: 29.7% to GDP, 49.66% to exports
  • Employment: Second largest after agriculture, 60 million people
  • Economic Impact: Extensive product range, significant export value
  • Role in Economy: Enhance entrepreneurial base, leverage local resources

  1. Explain the complementary relationship between MSMEs and large industries. How do MSMEs function as ancillary units and what benefits do they bring to the value chain in terms of local raw materials and indigenous skills?
    Answer: MSMEs play a crucial role as ancillary units to large industries, forming an integral part of the industrial value chain. These enterprises support large industries by supplying various components, specialised services, and finished goods, which are essential for the production processes of larger corporations. By utilising local raw materials and harnessing indigenous skills, MSMEs contribute to the preservation of local crafts and reduce the dependency on imported materials, fostering a sustainable economic environment and promoting local employment.

Mindmap to remember this answer:

  • Function: Supply components and services to large industries
  • Benefits: Utilise local raw materials, preserve indigenous skills
  • Impact: Reduce import dependency, foster sustainability and local employment
  1. Considering the various types of enterprises under the MSME umbrella in India, describe the specific roles and contributions of traditional and modern industries, such as handlooms, handicrafts, and small scale industries.
    Answer: In India, MSMEs encompass a wide range of both traditional and modern small industries, including handlooms, handicrafts, coir, sericulture, and small scale industries. These sectors are crucial for the economic inclusion of diverse regions and communities, providing employment and sustaining traditional crafts. Handlooms and handicrafts, for instance, not only support cultural heritage but also contribute to the tourism and export sectors due to their unique, locally-inspired products.

Mindmap to remember this answer:

  • Sectors: Handlooms, handicrafts, coir, sericulture
  • Roles: Employment, sustain traditional crafts
  • Contributions: Support cultural heritage, boost tourism and exports
  1. Analyse the government’s strategies to promote MSMEs in the pre-reform and post-reform periods. What objectives were aimed at through these initiatives, particularly concerning self-reliance and rural industrialisation?
    Answer: The Indian government has actively promoted MSMEs through various reforms and policies aimed at enhancing self-reliance and fostering rural industrialisation. Pre-reform initiatives focused on providing subsidies and financial support, whereas post-reform policies have emphasised technology upgradation, skill development, and global market integration. These strategic efforts aim to empower MSMEs, enabling them to compete effectively both in national and international arenas.

Mindmap to remember this answer:

  • Pre-Reform: Subsidies, financial support
  • Post-Reform: Technology upgradation, skill development
  • Objective: Enhance self-reliance, foster rural industrialisation

Please log in to view this content.

Sample Questions Paper

Chapter 9 MSME and Business Entrepreneurship – Sample Questions Paper

Sample Question: 1

Time Allowed: 2 hours Maximum Marks: 40

General Instructions:

  1. The question paper contains 14 questions.
  2. All questions are compulsory.
  3. Section A (Question number 1 and 2): 1 mark source-based questions. Answers to these questions must not exceed 10-15 words.
  4. Section B (Question number 3 to 9): 2 marks questions. These are very short-answer type questions. Answers to these questions should not exceed 30 words.
  5. Section C (Question number 10 to 12): 4 marks questions. These are short-answer type questions. Answers to these questions should not exceed 80 words.
  6. Section D (Question number 13 and 14): 6 marks questions. These are long-answer type questions. Answers to these questions should not exceed 200 words.

Section A

  1. Describe one impact of MSMEs on local employment based on the text provided.
  2. What is one significant role of MSMEs in rural industrialisation as mentioned in the text?

Section B

  1. Outline the primary sectors where MSMEs contribute significantly as per the textbook.
  2. How do MSMEs support the indigenous skills according to the provided text?
  3. Explain the significance of the MSMED Act, 2006 in the context of MSME development.
  4. Identify two major problems faced by MSMEs in relation to technology and procurement of raw materials.
  5. What role does entrepreneurship play in the economic development of a nation, according to the text?
  6. Define Intellectual Property Rights as explained in the textbook.
  7. What is the primary purpose of a patent as stated in the textbook?

Section C

  1. Discuss how MSMEs contribute to the GDP and exports of India, based on the textbook data.
    OR
    Examine the linkage between MSMEs and large industries as outlined in the text.
  2. Elaborate on the challenges faced by MSMEs in accessing finance and managing quality, as per the textbook.
    OR
    Describe the entrepreneurial characteristics necessary for successful business ventures as highlighted in the textbook.
  3. Analyse the role of intellectual property in fostering innovation and economic growth, using examples from the text.
    OR
    Explain how geographical indications help preserve cultural identity, referring to the examples given in the text.

Section D

  1. Evaluate the impact of MSMEs on socio-economic development and the urban-rural divide. Use specific details from the text.
    OR
    Discuss the evolution of the legal framework supporting MSMEs in India, focusing on changes over time as described in the textbook.
  2. Describe the various types of intellectual property rights and their importance to entrepreneurs. Include specific types and their functions as outlined in the textbook.
    OR
    Assess the significance of trademarks and geographical indications in the global marketplace, using examples from the text.

Sample Question: 2

Time Allowed: 2 Hours Maximum Marks: 40

General Instructions:

  1. This question paper contains 14 questions.
  2. All questions are compulsory.
  3. Section A Questions number 1 and 2 are 1 mark source-based questions. Answers to these questions must not exceed 10-15 words.
  4. Section B Questions number 3 to 9 are 2 marks questions. These are very short-answer type questions. Answers to these questions should not exceed 30 words.
  5. Section C Questions number 10 to 12 are 4 marks questions. These are short-answer type questions. Answers to these questions should not exceed 80 words.
  6. Section D Questions number 13 and 14 are 6 marks questions. These are long-answer type questions. Answers to these questions should not exceed 200 words.

Section A

  1. Define MSME as per the latest definitions in India.
  2. What is the contribution of MSMEs to India’s GDP according to recent data?

Section B

  1. Explain the role of MSMEs in rural industrialisation.
  2. How do MSMEs contribute to employment in India?
  3. List two major export products produced by Indian MSMEs.
  4. What are the key sectors included under the MSME category in India?
  5. Discuss one major problem faced by MSMEs in accessing technology.
  6. What financial challenges do MSMEs typically face?
  7. Describe the impact of MSMEs on local raw material usage.

Section C

  1. Discuss the dual role of MSMEs in supporting large industries and fostering entrepreneurship.
    OR
    Describe how MSMEs contribute to India’s export economy.
  2. What are the key features of the MSMED Act, 2006 that support MSMEs?
    OR
    Explain how MSMEs help in balancing regional development in India.
  3. Identify and explain the challenges MSMEs face in marketing their products.
    OR
    Analyse the significance of innovation in MSMEs for sustaining competitiveness.

Section D

  1. Elaborate on the relationship between MSMEs and the Indian economy’s growth. Discuss with examples.
    OR
    Evaluate the impact of government policies on the growth and sustainability of MSMEs in India.
  2. Discuss the role of intellectual property rights (IPR) in enhancing the competitiveness of MSMEs.
    OR
    Analyse the importance of entrepreneurial development in the MSME sector and how it influences the broader economy.
error: Content is protected !!
Table Of Content
Scroll to Top