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Maharashtra State Board · HSC Commerce · Class 12 (Std XII)

Class 12 OCM Chapter 3: Entrepreneurship Development

Short notes, key concepts, quick revision and practice MCQs with answers

Explains who an entrepreneur is, the traits, qualities and functions of entrepreneurs, how entrepreneurship is developed through training and EDPs, and recent schemes such as Start-up India, Stand-Up India, agro tourism and intrapreneurship.

Key concepts: Entrepreneurship Development

Entrepreneur
A person who starts a business and is ready to bear the risk of loss in order to earn money. The word comes from the French verb 'entreprendre', meaning to undertake.
Entrepreneurship
The willingness of a person to start a new venture, take risk and manage it in a competitive, technology driven environment. Business and risk are the key ideas.
Functions of an entrepreneur
Innovation, determining objectives, developing the market, introducing new technology, keeping good relations, organizing funds and taking decisions.
Entrepreneurship Development Programme (EDP)
A programme that identifies people with entrepreneurial traits, motivates them, trains them to run a unit and guides them in starting an enterprise.
Start-up India
A Government of India initiative launched in 2016 to build an ecosystem that nurtures start-ups, creating growth and jobs through easy compliance, funding support and incubation.
Stand-Up India
A scheme giving bank loans of Rs 10 lakh to Rs 1 crore to SC/ST and women entrepreneurs, at least one of each per bank branch, for a new (greenfield) enterprise.
Agro tourism
Bringing city people to farms for leisure and hands-on farm experiences, giving farmers extra income. Maharashtra is the pioneer state in developing it.
Intrapreneur
An employee who is backed by the company to carry out his own creative ideas inside it. Unlike an entrepreneur, he does not invest his own money or take the financial risk.

Quick revision: important points

Practice MCQs with answers

  1. The word 'entrepreneur' comes from the French verb 'entreprendre'. What does it mean?

    1. To invest
    2. To undertake
    3. To produce
    4. To employ
    Show answer

    Answer: B. To undertake
    Entreprendre means 'to undertake', which is why an entrepreneur is one who undertakes a venture.

  2. Which French economist applied the term 'entrepreneur' to business and economic activities in the early 18th century?

    1. John Stuart Mill
    2. Howard Stevenson
    3. Richard Cantillon
    4. Gifford Pinchot
    Show answer

    Answer: C. Richard Cantillon
    Richard Cantillon, a French economist, first used the term for business and economic activity.

  3. In 1848, the economist John Stuart Mill described entrepreneurship as:

    1. The founding of a private enterprise
    2. Leading military expeditions
    3. Working as a building contractor
    4. Managing a government office
    Show answer

    Answer: A. The founding of a private enterprise
    Mill saw entrepreneurship as the founding of a private enterprise. Military leaders and contractors were earlier uses of the word.

  4. Which definition says that entrepreneurship is 'the pursuit of opportunity beyond resources controlled'?

    1. Webster dictionary
    2. Oxford English Dictionary
    3. Gifford Pinchot
    4. Howard Stevenson
    Show answer

    Answer: D. Howard Stevenson
    This definition is given by Howard Stevenson, a professor at Harvard Business School.

  5. Which two keywords are closely linked in the idea of an entrepreneur?

    1. Salary and job
    2. Business and risk
    3. Land and labour
    4. Profit and tax
    Show answer

    Answer: B. Business and risk
    Without a real business and real risk a person cannot be called an entrepreneur, so these two words are interrelated.

All Class 12 OCM chapters

Class 12 OCM notes: all chapters