Saturday, October 19, 2019

Entrepreneurship Development Solved Question Papers: Nov' 2018


DIBRUGARH UNIVERSITY QUESTION PAPERS
2018 (November)
COMMERCE (General/Speciality)
Course: 502 (Entrepreneurship Development)
Time: 3 hours
The figures in the margin indicate full marks for the questions
(NEW COURSE)
Full Marks: 80
Pass Marks: 24
1. (a) Write True or False of the following:                                                          1x4=4

1)         The word ‘Entrepreneur’ has been derived from the French word ‘Intrapreneur’. False, Entreprendre
2)         Entrepreneurship helps in increasing Government revenue.                             True
3)         Self-help groups are generally the group of rich people.      False, Poor
4)         IIE was established in the year 1993.                             True, In Guwahati
(b) Write the full forms of the following:                                                         1x4=4
1)         SGSY.  Swarnajayanti Gram Swarojgar Yojana
2)         SIDO.  Small Industries Development Organisation
3)         DI & CC. DISTRICT INDUSTRIES AND COMMERCE CENTRE
4)         MSME. Micro, Small and Medium Enterprises
2. Write short notes on the following:                                                                   4x4=16
a)      Entrepreneurship and Intrapreneurship
Ans: Entrepreneurship: Entrepreneurship can be described as a process of action an entrepreneur undertakes to establish his enterprise. It is a creative activity. It is the ability to create and build something from practically nothing. It is a knack of sensing opportunity where others see chaos, contradiction and confusion.
Entrepreneurship is the attitude of mind to seek opportunities, take calculated risks and derive benefits by setting up a venture. It comprises of numerous activities involved in conception, creation and running an enterprise.
Intrapreneurship: It is a system within an organisation which allows an employee to act like entrepreneur within an organisation. Intrapreneur posses the same traits and qualities like an entrepreneur but they are not independent and work according to the instructions of the entrepreneurs.
Difference between Entrepreneurship and Intrapreneurship
Entrepreneurship
Intrapreneurship
1. Entrepreneur is an employer.
1. Intrapreneur is an employee.
2. Entrepreneur bears all the risk involved in the business.
2. Intrapreneur does bear all the risk within organisation.
3. All the rewards of business go to the entrepreneur.
3. High salary and incentives are the rewards of the intrapreneur.
4. Entrepreneurs are independent and have full control over the project.
4. Intrapreneurs are dependent on the organisations and do not have full control over the project.

b)      Functions of self-help group.
Ans: Functions of SHGs: The important functions of SHG are the following:
a)      Enabling members to become self-reliant and self-dependent.
b)      Providing a forum for members for discussing their social and economic problems.
c)       Enhancing the social status of members by virtue of their being members of the group.
d)      Providing a platform for members for exchange of idea.
e)      Developing and encouraging the decision making capacity of members.
f)       Fostering a spirit of mutual help and cooperation among members.
g)      Instilling in members a sense of strength and confidence which they need for solving their problems.
h)      Providing organizational strength to members.
i)        Providing literacy and increasing general awareness among members, and
j)        Promoting numerically and equipping the poor with basic skills required for understanding monetary transactions.
c)       Problems of women entrepreneur.
Ans: Problems and Challenges of woman entrepreneurship in Assam
The entrepreneurs in Assam in particular and those of Indian’s North Eastern Region in general, irrespective of their gender, have some specific problems in setting up and running their business ventures. Similarly the Indian women in general have some problems specific to them. The nature and magnitude of the problems faced by our women depends on various factors to which a woman is subjected. Women in general have high degree of patience, profound sincerity in work, diligence, sense of duty and efficient managerial skill (with initial guidance). But unfortunately, the society either fails to identify their quality or under-estimate them and /or suppress them as second class citizen. The problems in general the women entrepreneurs in developing countries like India face, which are equally applicable to the women entrepreneurs in Assam relate to the following:
1.       Social attitude and support: Being in a male dominated society, the Indian women are treated as dependent on men and have no liberty to take decisions of their own. The attitude of non-co-operative from her husband or close family members stands heavily in the way of developing women entrepreneurship. Moreover, the conservative attitude of the society does not allow our women in most cases, to take up entrepreneurial ventures. The gender related discrimination is felt more severely when a woman entrepreneur approaches promotional agencies or banks.
2.       Mobility constraint: The women in Assam more particularly those of rural areas have restrictions in their mobility so far as their social status is concerned. Although now-a-days they have relatively more freedom of mobility, but most often become soft target of suspicion by husband. As a prospective entrepreneur, a woman has to visit various financial institutions and Govt. agencies repeatedly to get her works done. But the humiliating attitude of the officials frustrates her and most often abandons the idea of venturing the project.
3.       Dual Responsibility: A woman entrepreneur has to perform dual responsibility of her profession at enterprise as also at family as wife and mother. The unmarried girls also, in many cases, are expected to take care of their younger’s and help mother in her work, besides working at their enterprises. As responsibility of family care largely remains in the hands of women, the women entrepreneurs in Assam in particular and India in general suffer from work-family conflicts.
4.       Scanty Financial Resources: Financial constraint is a problem for business in general. But when it comes to the case of a woman entrepreneur, the problem becomes more severe. As both family members and the officials of financial institutions have less confidence on women as entrepreneurs, they are mostly reluctant to spare finance for a woman business venture.
5.       Absence of Rural Connectivity and Development: Our rural areas are highly potential markets for consumer goods. But absence of proper connectivity and development efforts are the major challenges in developing sustained entrepreneurial practices among our rural women.
d)      Development of indigenous entrepreneurship in Assam.
Ans: It is well known fact that business environment in Assam and other NE is not supportive. NE region was ignored over the decades due to which the growth of NE region and Assam is slow as compared to other states. But with introduction of Start Ups and Incentives to new entrepreneurs, the business environment in the states has improved significantly. Assam suffers from lack of proper transportation facility, finance and skilled man powers but now government of India and Assam has taken various steps to solve these issues.  Digital revolution in our country and Assam has increased the opportunity for every business and also open the door of new opportunities. To encourage entrepreneurship in Assam, Chief Minister Sarbananda Sonowal on announces that the state would give commendation and cash awards to three successful entrepreneurs every year. Mudra scheme has also been implemented to provide finance to the new entrepreneurs.
3. (a) Define entrepreneurship. Explain its significance in Indian context.                           14
Ans: Entrepreneurship: Entrepreneurship can be described as a process of action an entrepreneur undertakes to establish his enterprise. It is a creative activity. It is the ability to create and build something from practically nothing. It is a knack of sensing opportunity where others see chaos, contradiction and confusion.
Entrepreneurship is the attitude of mind to seek opportunities, take calculated risks and derive benefits by setting up a venture. It comprises of numerous activities involved in conception, creation and running an enterprise.
According to Peter Drucker Entrepreneurship is defined as ‘a systematic innovation, which consists in the purposeful and organized search for changes, and it is the systematic analysis of the opportunities such changes might offer for economic and social innovation.’
Entrepreneurship is a discipline with a knowledge base theory. It is an outcome of complex socio economic, psychological, technological, legal and other factors. It is a dynamic and risky process. It involves a fusion of capital, technology and human talent. Entrepreneurship is equally applicable to big and small businesses, to economic and non-economic activities.
ROLE OF ENTREPRENEURSHIP IN ECONOMIC DEVELOPMENT
The entrepreneur is the key to the creation of new enterprises that energise the economy and rejuvenate the established enterprises that make up the economic structure. Entrepreneurs initiate and sustain the process of economic development in the following ways:
1. Capital formation: Entrepreneurs mobilise the idle savings of the public through the issues of industrial securities. Investment of public savings in industry results in productive utilisation of national resources. Rate of capital formation increases which is essential for rapid economic growth. Thus, an entrepreneur is the creator of wealth.
2. Improvement in per capita income: Entrepreneurs locate and exploit opportunities. They convert the talent and idle resources like land, labour and capital into national income and wealth in the form of goods and services. They help to increase net national product and per capita income in the country, which are important yardsticks for measuring economic growth.
3. Improvement in living standards: Entrepreneurs set up industries which remove scarcity of essential commodities and introduce new products. Production of goods on mass scale and manufacture of handicrafts, etc., in the small scale sector help to improve the standard of life of a common man. These offer goods at lower costs and increase variety in consumption.
4. Economic independence: Entrepreneurship is essential for national self-reliance. Industrialists help to manufacture indigenous substitutes of hitherto imported products thereby reducing dependence on foreign countries. Businessmen also export goods and services on a large scale and thereby earn the scarce foreign exchange for the country. Such import substitution and export promotion help to ensure the economic independence of the country without which political independence has little meaning.
5. Backward and forward linkages: An entrepreneur initiates change which has a chain reaction. Setting up of an enterprise has several backward and forward linkages. For example, the establishment of a steel plant generates several ancillary units and expands the demand for iron ore, coal, etc. These are backward linkages. By increasing the supply of steel, the plant facilitates the growth of machine building, tube making, utensil manufacturing and such other units.
6. Generation of Employment: Entrepreneurship development training which helps in strengthening informal and unorganised sector is expected to motivate enterprising people to opt for self employment and entrepreneurial career. It will therefore, help in solving the problem of increasing unemployment to some extent.
7. Harnessing Locally Available Resources and Entrepreneurship: India is considered to be very rich in natural resources. In spite of about five decades of planned development a large number of states have remained economically backward. A few large scale industries started by entrepreneurs from outside the state in an economically backward area may help as model of pioneering efforts, but ultimately the real strength of industrialisation in backward areas depends upon the involvement of local entrepreneurship in such activities: Increased activities of local entrepreneurs will also result in making use of abundantly available local resources.
8. Balanced Regional Growth: Medium and large scale industries can only be started with huge investment which is either available with well established industrial houses or need to be drawn from public exchequer. Also, promotion of such industries does not help in reducing disparities of income and wealth. On the other hand, an important advantage of small scale enterprises is that they can be started with meager financial ‘resources and little or no previous experience or entrepreneurial background.
9. Reducing Unrest and Social Tension amongst Youth: Many problems associated with youth unrest and social tensions are rightly considered to be due to youth not being engaged in productive work. In the changing environment where we are faced with the problem of recession in wage employment opportunities, alternative to wage career is the only viable option. The country is required to divert the youth with latent entrepreneurial traits from wage career to self employment career. Such alternate path through entrepreneurship could help the country in defusing social tension and unrest amongst youth.
10. Innovations in Enterprises: Business enterprises need to be innovative for their survival and better performance. It is believed that smaller firms have relatively higher necessity and capability to innovate. The smaller firms do not face the constraints imposed by large investment in existing technology. Thus they are both free and compelled to innovate: The National Science Foundation, an organisation in USA found that small companies produce four times more innovations per research dollar than do bigger companies. Entrepreneurship development programmes are aimed at accelerating the pace of small firms’ growth in India. Increased number of small firms is expected to result in more innovations and make the Indian industry compete in international market.
Or
(b) Discuss the functions of an entrepreneur.                                                                                                    14
Ans: Functions of an Entrepreneur:
An entrepreneur frequently has to wear many hats. He has to perceive opportunity, plan, organize resources, and oversee production, marketing, and liaison with officials. Most importantly he has to innovate and bear risk. The main functions of an entrepreneur are as follows:
1. Innovation: Innovation is one of the most important functions of an entrepreneur according to Schumpeter. An entrepreneur uses information, knowledge and intuition to come up with new products, new methods of reducing costs of a product, improvement in design or function of a product, discovering new markets or new ways of organization of industry. Through innovation, an entrepreneur converts a material into a resource or combines existing resources into new and more productive configurations. It is the creativity of an entrepreneur that results in invention [creation of new knowledge] and innovation [application of knowledge to create new products, services or processes.] Systematic innovation means monitoring the following for innovative opportunity:
Ø  The unexpected success or failure or any unexpected outside event, (e.g. when the IT bubble burst the ITES sector started growing.)
Ø  Innovation based on process need [e.g. plate based cameras, film based cameras, digital cameras]
Ø  Changes in industry and market structure [e.g. video cassette VCD, DVD, Blue ray disc]
Ø  Demographics changes (e.g. increasing number of working women and nuclear families in most metropolitan cities)
Ø  New knowledge (e.g. Pentium chip)
2. Risk and uncertainty bearing: According to Hozelist an entrepreneur performs the function of risk and uncertainty bearing. Every decision pertaining to development of new products, adapting new technologies, opening up new markets involves risk. Decision-making in an environment of uncertainty requires anticipation of risk. Profit is said to be the reward for anticipating and taking such risks. However it is pertinent to mention that the entrepreneur is not a gambler, he only takes calculated risks. An entrepreneur develops the art of decision making under conditions of uncertainty as a matter of survival.
3. Organization building: An entrepreneur has to organize men, material and other resources. He has to perform the functions of planning, co-ordination and control. He has to use his leadership qualities to build a team, generate resources and solve problems. With his organizational skills an entrepreneur builds an enterprise from scratch, nurtures it and makes it grow. His vision sows the seeds for a sound and vibrant organization and synergies are built in the enterprise.
According to Kilby in a developing country even the imitator entrepreneurs are very important and the entrepreneurial role encompasses the following:
a)      Perception of market opportunities
b)      Gaining command over scarce resources
c)       Purchasing inputs
d)      Marketing the products
e)      Dealing with bureaucrats
f)       Managing human relations within the firm
g)      Managing customer and supplier relations
h)      Managing finance
i)        Managing production
j)        Acquiring and overseeing assembly of the factory
k)      Industrial engineering
l)        Upgrading process and product
m)    Introducing new production techniques and products

4. (a) What do you mean by women entrepreneurship? Point out the major opportunities and challenges of women entrepreneurship.                                                          4+10=14
Ans: Introduction to Women Entrepreneurship
Women Entrepreneurs may be defined as the women or a group of women who initiate, organize and operate a business enterprise. Government of India has defined women entrepreneurs as an enterprise owned and controlled by a women having a minimum financial interest of 51% of the capital and giving at least 51% of employment generated in the enterprise to women. Like a male entrepreneurs a women entrepreneur has many functions. They should explore the prospects of starting new enterprise; undertake risks, introduction of new innovations, coordination administration and control of business and providing effective leadership in all aspects of business.
Problems and Challenges of woman entrepreneurship in Assam
The entrepreneurs in Assam in particular and those of Indian’s North Eastern Region in general, irrespective of their gender, have some specific problems in setting up and running their business ventures. Similarly the Indian women in general have some problems specific to them. The nature and magnitude of the problems faced by our women depends on various factors to which a woman is subjected. Women in general have high degree of patience, profound sincerity in work, diligence, sense of duty and efficient managerial skill (with initial guidance). But unfortunately, the society either fails to identify their quality or under-estimate them and /or suppress them as second class citizen. The problems in general the women entrepreneurs in developing countries like India face, which are equally applicable to the women entrepreneurs in Assam relate to the following:
1)      Social attitude and support: Being in a male dominated society, the Indian women are treated as dependent on men and have no liberty to take decisions of their own. The attitude of non-co-operative from her husband or close family members stands heavily in the way of developing women entrepreneurship. Moreover, the conservative attitude of the society does not allow our women in most cases, to take up entrepreneurial ventures. The gender related discrimination is felt more severely when a woman entrepreneur approaches promotional agencies or banks.
2)      Mobility constraint: The women in Assam more particularly those of rural areas have restrictions in their mobility so far as their social status is concerned. Although now-a-days they have relatively more freedom of mobility, but most often become soft target of suspicion by husband. As a prospective entrepreneur, a woman has to visit various financial institutions and Govt. agencies repeatedly to get her works done. But the humiliating attitude of the officials frustrates her and most often abandons the idea of venturing the project.
3)      Dual Responsibility: A woman entrepreneur has to perform dual responsibility of her profession at enterprise as also at family as wife and mother. The unmarried girls also, in many cases, are expected to take care of their younger’s and help mother in her work, besides working at their enterprises. As responsibility of family care largely remains in the hands of women, the women entrepreneurs in Assam in particular and India in general suffer from work-family conflicts.
4)      Scanty Financial Resources: Financial constraint is a problem for business in general. But when it comes to the case of a woman entrepreneur, the problem becomes more severe. As both family members and the officials of financial institutions have less confidence on women as entrepreneurs, they are mostly reluctant to spare finance for a woman business venture.
5)      Low risk bearing capacity: Women in general have less confidence as compared to their male counterparts. As such, they have less risk taking ability; which is an essential pre-requisite for entrepreneurial success. Women in our country live a protected life. She is taught to depend on male members from birth. She is not allowed to take any risk even if she is willing to take and has ability to bear it.
6)      Low educational background: Our women, more particularly those who live in rural areas, bear a very low educational profile. Many of them are either illiterate or have very low level of education. As a result, they face a lot of problems in doing with their business.
7)      Absence of Skill and Motivation: Our rural women in general lack entrepreneurial skill and they do not posses adequate motivation towards entrepreneurial career. However, the Indian Institute of Entrepreneurship (IIE) experience indicates that effective training is a vibrant tool in developing and motivating women entrepreneurship.
8)      Absence of Group Efforts: The tendency of our women to work in group is very less. More particularly, when it comes to the case of doing business, they hardly understand the benefit of working in group. Therefore, our women should be encouraged to setup and operate enterprises with their group efforts.
9)      Absence of Rural Connectivity and Development: Our rural areas are highly potential markets for consumer goods. But absence of proper connectivity and development efforts are the major challenges in developing sustained entrepreneurial practices among our rural women.
Or
(b) Analyze the role of rural entrepreneurship in economic development of India.                         14

Ans: Role and importance of rural entrepreneurs in India
The development of rural entrepreneurs is a complex problem which can be tackled by the social, political and economic institutions. The sooner they are established the better it would be for the entrepreneurial development in the rural sector and the economic growth of the country.
1. Provide employment opportunities: Rural entrepreneurship is labor intensive and provide a clear solution to the growing problem of unemployment. Development of industrial units in rural areas through rural entrepreneurship has high potential for employment generation and income creation.
2. Check on migration of rural population: Rural entrepreneurship can fill the big gap and disparities in income rural and urban people. Rural entrepreneurship will bring in or develop infrastructural facilities like power, roads, bridges etc. It can help to check the migration of people from rural to urban areas in search of jobs.
3. Balanced regional growth: Rural entrepreneurship can dispel the concentration of industrial units in urban areas and promote regional development in a balanced way.
4. Promotion of artistic activities: The age-old rich heritage of rural India is preserved by protecting and promoting art and handicrafts through rural entrepreneurship.
5. Check on social evils: The growth of rural entrepreneurship can reduce the social evils like poverty, growth of slums, pollution in cities etc.
6. Awaken the rural youth: Rural entrepreneurship can awaken the rural youth and expose them to various avenues to adopt entrepreneurship and promote it as a career.
7. Improved standard of living: Rural entrepreneurship will also increase the literacy rate of rural population. Their education and self-employment will prosper the community, thus increasing their standard of living.

5. (a) What do you mean by Entrepreneurship Development Programme (EDP)? Describe the prime objectives of Entrepreneurship Development Programme.    2+12=14
Ans: ENTREPRENEURIAL DEVELOPMENT PROGRAMME (EDP)
Entrepreneurial Development Programme (EDP) can be defined as a programme, formally designed to help an individual in strengthening his/her entrepreneurial motive and in acquiring skill and capabilities necessary for playing entrepreneurial role effectively. In fact, it is an academic exercise to build up human resources by including them to take up entrepreneurial activities through motivation and developing the required entrepreneurial skills through exposure creation to effectively manage their enterprises.
Objectives of EDP: The major objectives of the Entrepreneurship Development Programmes (EDPs) are to:
a)      Develop and strengthen the entrepreneurial quality, i.e. motivation or need for achievement.
b)      Analyse environmental set up relating to small industry and small business.
c)       Select the product.
d)      Formulate proposal for the product.
e)      Understand the process and procedure involved in setting up a small enterprise.
f)       Know the sources of help and support available for starting a small scale industry.
g)      Acquire the necessary managerial skills required to run a small-scale industry.
h)      Know the pros and cons in becoming an entrepreneur.
i)        Appreciate the needed entrepreneurial discipline.
j)        Besides, some of the other important objectives of the EDPs are to:
k)      Let the entrepreneur himself / herself set or reset objectives for his / her enterprise and strive for their realization.
l)        Prepare him / her to accept the uncertainty in running a business.
m)    Enable him / her to take decisions.
n)      Enable to communicate clearly and effectively.
o)      Develop a broad vision about the business.
p)      Make him subscribe to the industrial democracy.
q)      Develop passion for integrity and honesty.
r)       Make him learn compliance with law.
Or
(b) Discuss the theories of leadership.                                                                                  14
Ans: Theories of Leadership
The Trait Theory: This approach represents the earliest notions of leadership and until up to three decades ago this approach was very popular. According to this theory, there are certain personal qualities and traits which are essential to be a successful leader. The advocates of this theory are of the opinion that persons who are leaders are psychologically better adjusted to display better judgement and to engage themselves in social activities. Ordway Tead has given a list of ten qualities.
a)      physical and nervous energy
b)      a sense of purpose and direction
c)       enthusiasm
d)      friendliness and affection
e)      integrity
f)       technical mastery
g)      decisiveness
h)      intelligence
i)        teaching skill
j)        faith
According to Hill, "Courage, self-confidence, morale qualities, self sacrifice, paternalism, fairness, initiative, decisiveness, dignity and knowledge of man are all essential qualities of a leader."
Stogdill classified the leadership qualities under six heads: capacity, achievement, responsibility, participation, status and situation.
But the trait theory has many shortcomings, and has been generally criticized on the following grounds:
1.       Various studies prove that the trait theory cannot hold good for all sets of circumstances.
2.       The list of trait is not uniform and different authors have give lists of different traits.
3.       It fails to take into account the influence of other factors on leadership.
4.       The theory fails to indicate the comparative importance of different traits.
5.       There are many persons who have been outstanding leaders in business although they have been humour less, narrow-minded, unjust and authoritarian. In the same manner, there have been many persons who were not good leaders although they had traits as specified for leaders.
The Behavioural Theory: The short comings of the trait theory led to a significant change in the emphasis of leadership approach. This shift in emphasis began to focus an attention on the actual behaviour and actions of leaders as against personal qualities or traits of leaders. According to his approach, leadership involves an interpersonal relationship between a leader and subordinates in which the behaviour of the leader towards the subordinates constitutes the most critical element. The good behaviour of the leader raises the morale, builds up confidence and spirit among the team members and the lack of good behaviour will discard him as a leader.
But the behavioural theories also suffer from certain limitations, e.g., what constitutes the most effective style of leadership behaviour? Moreover, a particular behaviour or action of a leader may be effective at one point of time while the same may be ineffective in some other point of time and in some other circumstances.
The Situational Theories: The situational theories emphasize not on personal qualities or traits of a leader, but upon the situation in which he operates. The advocates of this approach believe that leadership is greatly affected by a situation and maintain that leadership pattern is the product of situation at a particular time. A good leader is one who moulds himself according to the needs of a given situation.
The situational theory of leadership suffers from the drawback that it fails to consider the fact that in the complex process of leadership, individual qualities and traits of the leader also play an important role. In the words of Thomas Gordon, "Situationist has overlooked the possibility that some traits influence their possessors to attain leadership success and some others increase the chances of their becoming leaders.
The Follower Theory: The shortcomings of the Trait Theory, the Behavioural Theory, and the Situational Theory influenced certain researchers to focus their attention on the followers. According to this theory the essence of leadership is follower ship and it is the willingness of people to follow that makes a person a leader. The members of a group tend to follow only those whom they recognize as providing means for achieving their personal desires, wants and needs.
Like all other theories, the Follower Theory also sounds well but it also represents only one sided view. The best ting will be to integrate the various theories to study leadership pattern. To conclude, we can say that effective leadership depends on the traits of the leader, situation and the type of the followers.
6. (a) Evaluate the role of the following organizations in developing entrepreneurship in North-East:  7+7=14
(1) KVIC.       
Ans: Functions: The crucial functions which the KVIC performs towards attainment of its avowed objectives are as follows:
1.       Works towards planning, promotion, organization and implementation of programmes for the development of Khadi and other village industries in the rural areas of the country in coordination with the other agencies engaged in rural development.
2.       Works towards building up of a reserve of raw materials and implements for supply to producers, creation of common service facilities for processing of raw materials as semi-finished goods and provision of facilities for marketing of KVI products.
3.       Organizes training of artisans engaged in Khadi and Village Industries.
4.       Encourages and promotes research in the production techniques and equipments employed in the KVI sector and provides facilities for study of the problems relating to the same.
5.       It also encourages the use of non-conventional energy, bio-fertilizer and other organic products.
6.       Provides financial assistance to institutions and persons who are engaged in the development and operation of Khadi and Village Industries and guides them through the supply of designs, prototypes and other technical information.
(2) NEDFI.
Ans: Functions: The NEDFi aims to be a dynamic and responsive organization catalyzing the economic development of the North East India. It assists in the efficient formation of fixed assets by identifying and nurturing eco-friendly and commercially viable industrial and infrastructure projects in the region. Thus, the NEDFi prime role is to enhance the wealth of the region and prosperity of its people. The major functions of the NEDFi are as follows:
a)      To provide financial assistance to MSMEs for setting up industrial units, infrastructure and agri-allied projects in the North Eastern Region of India.
b)      To extend Micro-Finance to Non-Government Organizations (NGOs) and voluntary Agencies (Vas) with good track-records for on-lending to the needy who can take up income generating activities for self-employment.
c)       To offer Consultancy and Advisory services to the state Governments private sectors and other agencies.
d)      To conduct state specific studies under the state’s Techno-Economic Development Fund (TEDF).
e)      To serve as a designated nodal agency for disbursement of the Government of India’s incentives to industries in the N.E. Region under the “North East Industrial and Investment Promotion Policy (NEIIPP) 2007” and also under the “Prime Minister’s Employment Generation Programme (PMEGP)” scheme.
f)       In addition to the above, the NEDFi takes up promotional activities which include NEDFi Haat, NEDFi Convention Centre, NEDFi Pavilion, etc.
Or
(b) Write notes on the following:                                                            7+7=14
(1) Promotional agencies.
Ans: List of Promotional Agencies
1) Micro, Small and Medium Enterprises Development Organisation (MSME – DO): This is the apex body for promotion and development of micro, small and medium enterprises in India. On enactment of the MSME Act 2006, MSME – DO come into being after revocation of the Small Industries Development Organisation (SIDO). The MSME – DO is headed by the Additional Secretary and Development commissioner under the Ministry of Micro, Small and Medium Enterprises.
2) KHADI AND VILLAGE INDUSTRIES COMMISSION (KVIC): It is a statutory body created by an Act of Parliament in 1956 and became operative from April 1957 by taking over the work of the erstwhile “All India Khadi and Village Industries Board” set up in 1950. The Commission is engaged in the task of promoting and developing Khadi and Village Industries (KVI) with a view to creating employment avenues in the rural areas thereby strengthening the rural economy of India. It functions under the administrative control of the Ministry of Micro Small and Medium Enterprises, Govt. of India.
3) KHADI AND VILLAGE INDUSTRIES BOARD (KVIB): It is a state level statutory body formed by an Act of the concerned state legislature. In India, at present there are 33 KVIBs in different States and Union Territories. The Assam Khadi and Village Industries Board Act was passed in the year 1955. The basic objective of the Board is to work towards organizing, developing and regulating the village industries in the state.
4) NORTH EASTERN DEVELOPMENT FINANCE CORPORATION (NEDFi): The North Eastern Development Finance Corporation Ltd (NEDFi) is a Public Limited Company registered under the Companies Act 1956 on 9th August, 1995. It is notified as a Public Financial Institution under Section 4A of the said Act and was registered as an NBFC in 2002 with RBI. The shareholders of the Corporation are IDBI, SBI, LICI, SIDBI, ICICI, IFCI, SUUTI, GIC and its subsidiaries. The management of NEDFi has been entrusted upon the Board of Directors comprising representatives from shareholder institutions, DoNER, State Governments and eminent persons from the NE Region and outside having wide experience in industry, economics, finance and management.
5) DISTRICT INDUSTRIES AND COMMERCE CENTRE (DI&CC): The District Industries and Commerce Centre (DI&CC) operate from the District head quarters of Assam. The centres work in close association with the Commissioner of Industries and Commerce, Guwahati. All the preliminary works relating to availing of the Govt. policy supports by the entrepreneurs in the form of schemes and incentives are done at the DI&CC level.
(2) Problems of small-scale industries in Assam.
Ans: Problems and Prospects of Small enterprises in Assam
Small- scale industries have been defined as those units that have investment in plant and machineries up to Rs. 1crore. This sector has occupied a place of prominence in our economy. But this sector is suffering from various problems which hamper its growth.
a)      Inefficient manpower: Manpower plays an important role in any industry. The inefficiency of manpower in small- scale industries due to illiteracy, ignorance, lack of training facilities etc. affected the growth of small- scale industries.
b)      Lack of credit facility: Another major problem of small- scale industries is the lack of credit facilities. Before nationalisation, commercial banks were not interested in providing finance to this sector. This situation has been changed after nationalisation of commercial banks but it is far from satisfactory level.
c)       Old and obsolete machineries: The small- scale industries are facing the problem in production due to old and obsolete machineries. They are unable to compete with the products of large- scale industries.
d)      Lack of marketing facilities: The small- scale industries also facing the problem of marketing their products. There is lack of organised marketing facilities for these industries. They have to depend on the middlemen for selling their products. In many cases the market for their products remains untapped.
e)      Old designs: the small- scale industries are continuing with the age old designs. The products are unable to meet the modern demand.
Prospects of small- scale industries: The small- scale industries play an important role in the development of the economy. Even in developed countries, they occupy an important place. In under-developed countries also, they make great contributions towards economic development. The prospects of small- scale industries in North- East Region may be discussed as under: 
a)      Labour intensive: The small- scale industries are labour intensive. They will provide more employment opportunities as compared to large- scale industries. It will help in solving the unemployment problem in the region.
b)      Low capital investment: Small- scale industries need lower capital investment as compared to large- scale industries. As capital is scarce in this region, small- scale industries are most suitable for this region.
c)       Quick return: In case of small- scale industries, there is less time gap between capital investment and production of goods. Thus, it brings quick return to the businessmen.
d)      Reduction of pressure on land: People of this region excessively depend on agriculture. The development of small- scale industries will help in diverting the excess workforce to this sector.
e)      Development of entrepreneurial skill: The development of this sector will result in change of attitude of people of this region. People will develop an entrepreneurial skill, which will help in identifying new areas of investment. This will help in the economic development of the region.
(OLD COURSE)
Full Marks: 80
Pass Marks: 32
1. (a) Write True or False of the following:                                              1x4=4
1)         Entrepreneurs are born, not made.               False, Entrepreneurs are made, not born
2)         The word ‘Entrepreneur’ has been derived from the French word ‘Entreprendre’.  True
3)         An entrepreneur is his own master.              True
4)         An entrepreneur is a good decision maker.                                False
(b) Write the full forms of the following:                                  1x4=4
1)         IIE.                Indian Institute of Entrepreneurship
2)         DICC.           DISTRICT INDUSTRIES AND COMMERCE CENTRE
3)         MSME.                       Micro, Small and Medium Enterprises
4)         SHG.            Self Help Group
2. Write short notes on the following:                                4x4=16
a)         Women entrepreneur.
b)         Qualities of entrepreneur.
c)          Motivation.
d)         Skill development programme.
3. (a) Discuss the essential characteristics of a successful entrepreneur.                      11
Or
(b) Define entrepreneurship. Explain its significance.                                    11
4. (a) Describe the problems of women entrepreneurs of Assam.                          11
Or
(b) Critically examine the innovation theory of entrepreneurship.                       11
5. (a) What do you mean by self-help group? Explain the finding procedure of self-help groups in India.                    11
Or
(b) Discuss the main objectives of Entrepreneurship Development Programme.           11
6. (a) Discuss the salient features of the Micro, Small and Medium Enterprises Development Act, 2006. 12
Or
(b) Write an explanatory note on the needs of institutional support to entrepreneurs.                 12
7. (a) Write a note on the different sources of venture capital in India.                    11
Or
(b) Discuss the legal requirement to establish a new business unit in form of a private company.   11

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