Entrepreneurship and Start-ups (4300021) - Winter 2024 Solution

Question 1(a) [3 marks]

#

Distinguish between Entrepreneur and Manager.

Answer:

Mnemonic: “CRIFO” - Creates Risk Innovation Focus Ownership

Question 1(b) [4 marks]

#

Explain any four functions of Entrepreneurship.

Answer:

• Job Creation: Entrepreneurs establish new businesses, creating employment opportunities for others
• Innovation: They introduce new products, services, or processes to meet market needs
• Economic Development: Generate wealth, contribute to GDP, and stimulate economic growth
• Risk Taking: Accept business uncertainties and financial risks for potential profits

Diagram:

graph TD
    A[Entrepreneurship Functions] --> B[Job Creation]
    A --> C[Innovation]
    A --> D[Economic Development]
    A --> E[Risk Taking]
    B --> F[Employment Generation]
    C --> G[New Products/Services]
    D --> H[GDP Growth]
    E --> I[Business Uncertainty]

Mnemonic: “JIER” - Job Innovation Economic Risk

Question 1(c) [7 marks]

#

How MSMEs are important in the development of economy of India?

Answer:

• Manufacturing Flexibility: Quick adaptation to market changes and customer requirements
• Innovation Hub: Supports large industries as suppliers and vendors
• Entrepreneurship Development: Encourages individual business ownership and self-employment

Mnemonic: “EIGER-MIE” - Employment Industrial GDP Export Rural Manufacturing Innovation Entrepreneurship

Question 1(c) OR [7 marks]

#

How Student Start-up and Innovation Policy (SSIP) helps diploma students to start their own start-up?

Answer:

• Academic Integration: Start-up activities counted as academic credits
• IPR Support: Help in patent filing and intellectual property protection
• Market Access: Networking opportunities with investors and industry partners

Mnemonic: “FIMSAIM” - Financial Incubation Mentorship Skill Academic IPR Market

Question 2(a) [3 marks]

#

What is project report? Show its importance in project implementation.

Answer:

A project report is a comprehensive document containing detailed information about a proposed business venture including technical, financial, and commercial aspects.

Importance:

• Loan Approval: Banks require project reports for financing decisions
• Resource Planning: Helps in proper allocation of resources and manpower
• Risk Assessment: Identifies potential challenges and mitigation strategies

Mnemonic: “LRR” - Loan Resource Risk

Question 2(b) [4 marks]

#

How the Break-Even Point (in terms of sales revenue) is calculated? Also show graphical representation with example.

Answer:

Formula: Break-Even Point (Sales) = Fixed Costs ÷ Contribution Margin Ratio

Where: Contribution Margin Ratio = (Sales - Variable Costs) ÷ Sales

Example:

• Fixed Costs = ₹50,000
• Selling Price per unit = ₹100
• Variable Cost per unit = ₹60
• Contribution per unit = ₹40
• Contribution Margin Ratio = 40%
• Break-Even Sales = ₹50,000 ÷ 0.40 = ₹1,25,000

Diagram:

Mnemonic: “FCR” - Fixed Costs Contribution Ratio

Question 2(c) [7 marks]

#

Explain the need of market survey and also explain the market test method of market survey.

Answer:

Need of Market Survey:

Market Test Method:

• Test Marketing: Launch product in limited geographic area
• Focus Groups: Conduct discussions with target customers
• Pilot Studies: Small-scale product trials with selected customers
• Online Surveys: Digital questionnaires for broader reach

graph LR
    A[Market Survey Need] --> B[Demand Assessment]
    A --> C[Competition Analysis]
    A --> D[Market Size]
    A --> E[Pricing Strategy]
    
    F[Market Test Methods] --> G[Test Marketing]
    F --> H[Focus Groups]
    F --> I[Pilot Studies]
    F --> J[Online Surveys]

Mnemonic: “DCMP-TFPO” - Demand Competition Market Pricing Test Focus Pilot Online

Question 2(a) OR [3 marks]

#

What is marketing plan? Explain in brief.

Answer:

A marketing plan is a strategic document outlining how a business will promote and sell its products or services to target customers.

Components:

• Market Analysis: Customer demographics and behavior study
• Marketing Mix: Product, Price, Place, Promotion strategies
• Budget Allocation: Financial resources for marketing activities

Mnemonic: “AMB” - Analysis Mix Budget

Question 2(b) OR [4 marks]

#

Prepare SWOT analysis for a company manufacturing e-bike in urban region in Gujarat.

Answer:

Mnemonic: “SWOT-GILH” - Strengths Weaknesses Opportunities Threats Government Infrastructure Low High

Question 2(c) OR [7 marks]

#

What is innovation? List any five innovations of any product or process or service.

Answer:

Innovation is the process of creating new or improved products, services, or processes that provide value to customers and competitive advantage to organizations.

Five Product/Service Innovations:

• Value Creation: Each innovation solved existing customer problems
• Market Disruption: Changed traditional business models and user behavior
• Technology Integration: Combined multiple technologies for enhanced user experience

Mnemonic: “UNTZI-VTM” - UPI Netflix Tesla Zoom Innovation Value Technology Market

Question 3(a) [3 marks]

#

Write short note on partnership firm.

Answer:

A partnership firm is a business structure where two or more individuals jointly own and operate a business for profit.

Key Features:

• Shared Ownership: Multiple partners contribute capital and expertise
• Joint Liability: Partners are personally liable for business debts
• Profit Sharing: Earnings distributed according to partnership agreement

Mnemonic: “SJP” - Shared Joint Profit

Question 3(b) [4 marks]

#

Explain the various activities involved in ‘staffing’ function of management with example.

Answer:

• Placement: Assigning right person to right job position
• Promotion: Career advancement based on performance and experience
• Compensation: Determining fair wages and benefits package

Mnemonic: “RSTPPC” - Recruitment Selection Training Performance Placement Promotion Compensation

Question 3(c) [7 marks]

#

Explain the autocratic leadership and state its advantages.

Answer:

Autocratic Leadership is a management style where the leader makes all decisions independently without consulting team members.

Characteristics:

• Centralized Decision Making: Leader has complete authority and control
• Clear Chain of Command: Well-defined hierarchy and reporting structure
• Limited Employee Input: Minimal participation in decision-making process

Advantages:

graph TD
    A[Autocratic Leadership] --> B[Centralized Decisions]
    A --> C[Clear Chain of Command]
    A --> D[Limited Employee Input]
    
    E[Advantages] --> F[Quick Decisions]
    E --> G[Clear Direction]
    E --> H[Crisis Management]
    E --> I[Higher Productivity]
    E --> J[Single Accountability]

Mnemonic: “QCCPA” - Quick Clear Crisis Productivity Accountability

Question 3(a) OR [3 marks]

#

Write short note on joint stock company.

Answer:

A joint stock company is a business organization where capital is divided into shares owned by multiple shareholders.

Key Features:

• Limited Liability: Shareholders’ liability limited to their investment
• Transferable Shares: Ownership can be easily bought and sold
• Separate Legal Entity: Company exists independently of its owners

Mnemonic: “LTS” - Limited Transferable Separate

Question 3(b) OR [4 marks]

#

Explain the various activities involved in ‘organizing’ function of management with example.

Answer:

• Resource Allocation: Distributing financial and human resources efficiently
• Span of Control: Determining number of subordinates per manager
• Unity of Command: Each employee reports to one superior

Mnemonic: “JDDCRSU” - Job Departmentalization Delegation Coordination Resource Span Unity

Question 3(c) OR [7 marks]

#

Explain the democratic leadership and state its advantages.

Answer:

Democratic Leadership is a management style where leaders involve team members in decision-making processes and encourage participation.

Characteristics:

• Participative Decision Making: Team members contribute to problem-solving
• Open Communication: Two-way communication between leaders and employees
• Shared Responsibility: Collective ownership of outcomes and results

Advantages:

graph TD
    A[Democratic Leadership] --> B[Participative Decisions]
    A --> C[Open Communication]
    A --> D[Shared Responsibility]
    
    E[Advantages] --> F[Job Satisfaction]
    E --> G[Quality Decisions]
    E --> H[Creativity]
    E --> I[Team Building]
    E --> J[Employee Development]

Mnemonic: “JQCTE” - Job Quality Creativity Team Employee

Question 4(a) [3 marks]

#

State various functions of District Industries center.

Answer:

• Registration Services: MSME registration and various license approvals
• Financial Assistance: Guidance for loans and government scheme applications
• Technical Support: Providing technical guidance and consultancy services

Mnemonic: “RFT” - Registration Financial Technical

Question 4(b) [4 marks]

#

Identify any two state level incubators and write their functions.

Answer:

Common Functions:

• Mentorship Programs: Expert guidance from industry professionals
• Networking Events: Connecting startups with investors and partners

Mnemonic: “MFIN” - Mentoring Funding Infrastructure Networking

Question 4(c) [7 marks]

#

What is start-up eco system? List various activities and elements of start-up eco system.

Answer:

Start-up Ecosystem is a interconnected network of organizations, individuals, and resources that support entrepreneurship and startup development.

Key Elements:

Activities:

• Mentoring Sessions: Regular guidance from experienced entrepreneurs
• Networking Events: Startup meetups and investor pitch sessions
• Funding Rounds: Seed, Series A, B funding opportunities
• Skill Development: Technical and business training programs

graph TD
    A[Startup Ecosystem] --> B[Entrepreneurs]
    A --> C[Investors]
    A --> D[Incubators]
    A --> E[Government]
    A --> F[Educational Institutions]
    A --> G[Service Providers]
    
    H[Activities] --> I[Mentoring]
    H --> J[Networking]
    H --> K[Funding]
    H --> L[Skill Development]

Mnemonic: “EIGEES-MNFS” - Entrepreneurs Investors Government Education Service Mentoring Networking Funding Skill

Question 4(a) OR [3 marks]

#

State various functions of Small industries Development Bank of India (SIDBI).

Answer:

• Financial Services: Direct and indirect lending to MSMEs and startups
• Development Services: Capacity building and skill development programs
• Promotional Activities: Market development and technology upgradation support

Mnemonic: “FDP” - Financial Development Promotional

Question 4(b) OR [4 marks]

#

Identify any two national level incubators and write their functions.

Answer:

Common Functions:

• Acceleration Programs: Intensive startup development and mentoring
• Corporate Connections: Linking startups with large enterprise partners

Mnemonic: “TIGAC” - Technology Innovation Global Acceleration Corporate

Question 4(c) OR [7 marks]

#

Which steps should be taken to avoid failure of start-up? Explain in brief.

Answer:

Steps to Avoid Startup Failure:

• Risk Management: Identifying potential threats and mitigation strategies
• Adaptability: Flexibility to pivot based on market changes
• Legal Compliance: Proper registration and regulatory adherence

graph TD
    A[Avoid Startup Failure] --> B[Market Research]
    A --> C[Financial Planning]
    A --> D[Team Building]
    A --> E[Product Validation]
    A --> F[Customer Focus]
    A --> G[Risk Management]
    A --> H[Adaptability]
    A --> I[Legal Compliance]

Mnemonic: “MFTPCRAL” - Market Financial Team Product Customer Risk Adaptability Legal

Question 5(a) [3 marks]

#

How Return on Investment (ROI) is calculated?

Answer:

ROI Formula: ROI = (Net Profit ÷ Total Investment) × 100

Example:

• Investment = ₹1,00,000
• Net Profit = ₹20,000
• ROI = (20,000 ÷ 1,00,000) × 100 = 20%

Mnemonic: “NTH” - Net Total Hundred

Question 5(b) [4 marks]

#

Show the significance of technical analysis in feasibility study.

Answer:

Mnemonic: “TRPQ” - Technology Resource Process Quality

Question 5(c) [7 marks]

#

Explain the characteristics of corporate social responsibility.

Answer:

Corporate Social Responsibility (CSR) refers to business practices involving initiatives that benefit society and demonstrate commitment to ethical operations.

Key Characteristics:

• Community Development: Education, healthcare, and infrastructure projects
• Environmental Protection: Pollution control and resource conservation
• Employee Welfare: Fair wages, safe working conditions, skill development

graph TD
    A[CSR Characteristics] --> B[Voluntary Nature]
    A --> C[Stakeholder Orientation]
    A --> D[Triple Bottom Line]
    A --> E[Sustainable Practices]
    A --> F[Transparency]
    
    G[CSR Activities] --> H[Community Development]
    G --> I[Environmental Protection]
    G --> J[Employee Welfare]

Mnemonic: “VSTST-CEE” - Voluntary Stakeholder Triple Sustainable Transparency Community Environmental Employee

Question 5(a) OR [3 marks]

#

How Return on Sales (ROS) is calculated?

Answer:

ROS Formula: ROS = (Net Profit ÷ Net Sales) × 100

Example:

• Net Sales = ₹5,00,000
• Net Profit = ₹50,000
• ROS = (50,000 ÷ 5,00,000) × 100 = 10%

Mnemonic: “NSH” - Net Sales Hundred

Question 5(b) OR [4 marks]

#

Show the significance of market analysis in feasibility study.

Answer:

Mnemonic: “DCPM” - Demand Competition Pricing Market

Question 5(c) OR [7 marks]

#

Explain the characteristics of ethics.

Answer:

Ethics are moral principles that govern behavior and decision-making in personal and professional contexts.

Key Characteristics:

• Consistency: Ethical behavior remains constant across situations
• Transparency: Open and honest communication and actions
• Accountability: Taking responsibility for decisions and their consequences

graph TD
    A[Ethics Characteristics] --> B[Universal Principles]
    A --> C[Moral Standards]
    A --> D[Voluntary Compliance]
    A --> E[Consequential Thinking]
    A --> F[Stakeholder Consideration]
    A --> G[Consistency]
    A --> H[Transparency]
    A --> I[Accountability]

Mnemonic: “UMVCSCTA” - Universal Moral Voluntary Consequential Stakeholder Consistency Transparency Accountability