Sample Question Paper

Entrepreneurship (249)

Time: 3 Hours Maximum Marks: 100

Note:
i. This question paper consists of 51 questions in all.
ii. All questions are compulsory. Internal choices are given wherever required.
iii. Marks are given against each question.
iv. Section A consists of Qu. 1 to 20 that are Multiple Choice Questions (MCQs) carrying 1
Mark each.Select and write the most appropriate option out of the four options given in each of
these questions. An internal choice has been provided in some of these questions.
v. Section B consists of Objective type questions Qu. 21 to 35 carry 2 Marks each. Attempt
these questions as per the instructions given for each of the questions.
vi. Section C consists of
a. Q.No. 36 to 41 – Very Short questions carrying 02 marks each to be answered in the
range of 30 to 50 words.
b. Q.No. 42 to 47 – Short Answer type questions carrying 03 marks each to be answered
in the range of 50 to 80 words.
c. Q.No. 48 to 51 – Long Answer type questions carrying 05 marks each to be answered
in the range of 80 to 120 words.
Section-A
Qu. 1 to 20 are Multiple Choice Questions. Internal choices are given wherever necessary.
1. SIDBI stands for (1)
A. Small Industries Development Bank of India
B. Smart Industries Development Bank of India
C. Social Industries Development Bank of India
D. Small Industries Development Board of India
2. i. Which of the following is a social factor: (1)
A. Social Motive
B. Prestige and Self-Esteem
C. Cultural Value
D. All of the above
OR
ii. Which of the following helps in developing entrepreneurial
skills from infancy
A. Level of Education
B. Family Background
C. Innovation
D. None of the above
3. An entrepreneur helps to remove regional disparities through (1)
A. Import Substitution
B. Export Promotion
C. Balanced Regional Development
D. Forward and Backward Linkages
4. i. It is believed that both small scale and large scale units (1)
contribute in balanced regional development but if an entrepreneur
has less investment and infrastructure which of the following units
should be established
A. Small Scale Unit
B. Large Scale Unit
C. Medium Scale Unit
D. Capital Intensive Units
OR
ii. If the entrepreneur is located in the southern India, which of the
following industry would be more suitable to operate there
A. Agro-based industries
B. Poultry industry
C. Fishing industries
D. Wheat processing industries
5. Which of the following is not concerned with Push factors? (1)
(a) Job dissatisfaction
(b) Insufficient salary
(c) Zeal to work
(d) All of the above
6. i. Which of the following is the least degree of innovation? (1)
A. Radical
B. Incremental
C. Imitation
D. Continuous
OR
ii. Which of the following is an example of trademark?
A. Name
B. Logo
C. Symbol
D. All of the above
7. i. Having an edge over the competitor is called (1)
A.Competitive advantage
B. Productivity
C. Effectiveness
D. Resource optimization
OR
ii. Which of the following can be included as a spiritual value
A. Insight
B. Awareness
C. Truth
D. All of the above
8. The acronym “IPR” stands for (1)
A. Intellectual Proprietary Rights
B. Intelligent Property Rights
C. Intellectual Property Rights
D.Intelligence Protection Rights
9. i. If inventions are patentable which of the following can’t be (1)
patented:
A.Product designs
B.Business models
C.Business Idea
D.Working prototypes
OR
ii. Attributes like community, duty, justice, and security can be
categorized as which of the following values
A. Aesthetic value
B. Social value
C. Historical value
D. None of the above
10. An “out-of-the-blue” solution that cannot be compared to an (1)
existing solution implies
A. Disruptive innovation
B. Radical innovation
C. Discontinuous innovation
D. Breakthrough innovation
11. What right would be violated if a product coming from a specific (1)
geographical origin and possessing qualities is not attributed to
that place of origin?
A. Geographical Indications
B.Trade Secret
C.Trademark
D. Design
12. The basic features of values do not include: (1)
A. Standards of morality
B.Code of conduct of any activity
C.Work ethics
D. Corruption
13. A person may acquire his/her attitude from: (1)
A. Personal experiences
B. Association
C. Social learning
D. All of the above
14. i. Which of the following is not a core value amongst (1)
entrepreneurs
A. Honesty
B.Foresightedness
C. Dependence
D. Reliability
OR
ii. Motivation of one person differs from the motivation of another
person, even when both are engaged in same activity, because it is
A. A Complex process
B. Efficiency specific
C. Not easily observed
D. None of these
15. i. “Entrepreneurship is not a one-day activity. At times, it takes (1)
long to establish oneself in the market and create a brand image”.
Which of the following attitude is indicated in this statement?
A.Imagination
B.Change
C. Networking
D. Patience
OR
ii. It is hard to observe motivation directly, because it is
A. External Feeling
B. Internal Feeling
C. Mixed Feeling
D. Not felt
16. Grant of maternity leaves to a female employee of the (1)
organization is an appropriate example of
A. Gender based discrimination
B.Business ethics
C.Tolerance level of entrepreneur
D. Need for affiliation
17. i. A person joined your organization and is highly motivated to get (1)
promotions. The said person gets promoted to the next level but is
now unwilling to achieve further targets. This person needs to be
motivated again because
A. Motivation is a continuous process
B. Motivation is a one-time activity
C. The person is under pressure
D. The person is dissatisfied with promotion
OR
ii. Entrepreneurs search for continuous feedback of their actions,
so that:
A. They blame somebody else in time
B. They take corrective actions on time
C.They shut the business down
D.They can avoid new innovations
18. The analysis in which efforts are made to review the (1)
infrastructural facilities is known as
A. Market Feasibility Analysis
B. Technical Feasibility Analysis
C. Financial Feasibility Analysis
D. Commercial Feasibility Analysis
19. i. Economic analysis involves (1)
A.Plant and other commercial aspects
B. Risk and uncertainty analysis
C. Technical viability
D.Cost and benefit analysis
OR
ii. Which of the following type of businesses has the least legal
compliances
A. Sole Proprietorship
B. Partnership
C. Limited Liability Partnership
D. Company
20. i. If a new entrepreneur wants to seek guidance and assistant for (1)
export of his products, he can approach:
A. Centre for Entrepreneurship Development
B. Small Industries Development Organisation
C. Training and Development Organisation
D. Export Promotion Council
OR
ii. State-level financial institutions responsible for the growth of
MSMEs in the concerned states are known as
A. State Fiscal Corporations
B. State Financial Corporations
C. Skill Development Centres
D. National Bank for Agriculture and Rural Development
 SECTION-B
Qu. 21 to 35 carry two marks each. Internal choices are given
wherever necessary.
21. Match the following: (any two) (1x2)

a. Teaching
i. Self employment b. Low salary
ii. Push factor c. Micro enterprise
iii. Five crore d. Zeal to work
22. Fill in the blanks: (any one) (1x2)
i. Generally migration takes place from ___________ to
___________ areas.
ii. The quality of an entrepreneur to be able shift to the _________
areas is called ____________________ .
23. Give one word answer: (any two) (1x2)
i. Which right is most suited for the protection of items like
literary, musical, artistic works?
ii. When the share of enterprise sales is more in total market sales,
what is it said to be?
iii. SCAMMPERR technique is concerned with what?
24. State true or false: (any two) (1x2)
i. If you dislike uncertainty, you will fear being creative.
ii. Blue hat stands for creativity and a creative solution to
a problem is developed.
iii. The term lateral thinking was coined by Edward de
Bono.
25. Choose the correct answer out of the choices given: (any two) (1x2)
i. ____________ can be positive as well as negative.
ii. ___________ needs pertain to the survival of human
beings like food, shelter, clothing, air and water.
iii. Habit thinking means a set way of thinking which
tends to occur______________.
(Motivation, creativity, indispensable, subconsciously,
awareness, attentively, Physiological, Ego)
26. Complete the statements: (any two) (1x2)
i. The two theories of motivation are
____________________.
ii. The type of motivator needed to stimulate an employee
depends upon
_____________________________________.
iii. Internal Locus of Control
implies______________________.
27. Fill in the blanks: (any one) (1x2)
i. __________ and _____________ are examples of
physical resources.
ii. _________ and _________ are some well known
methods of the busniess resources.
28. Answer the following: (any one): (1x2)
i. Give two traditional sources of funds.
ii. Give two modern sources of funds.
29. State true or false: (any two) (1x2)
i. Angels often take an ownership stake in the enterprise
in exchange of investing their personal funds.
ii. Business incubator only provides financial services to
the businesses and entrepreneurs.
iii. While starting up a business, entrepreneur is the first
person to invest in it.
30. Match the following: (any two) (1x2)
i. angel a. organisation offering a range of
investor business development services and
access to small space on flexible terms,
to meet the needs of new firms
ii. Venture b. process of raising capital from
capital individuals and firms that invest in
high growth and high risk firms
iii. Business
incubator
c. an individual who invests in small
startups or entrepreneurships
d. invest at the later stages of the
company and take interest in operating
activities of the firm and help they
improve
 31. Complete the table below: (any one) (1x2)
Business Registration Under which Act Registration at
i. Partnership
firm
ii. Cooperative
Society
32. Complete the following statements: (any one) (1x2)
i. a micro enterprise, where the investment in Plant and
Machinery or Equipment does not exceed
_________rupees and turnover does not exceed
_________ rupees.
ii. a small enterprise, where the investment in Plant and
Machinery or Equipment does not exceed ________
rupees and turnover does not exceed __________
rupees.
33. Answer the following: (any two) (1x2)
i. For whom is Technology Business Incubator IIT
established?
ii. Which incubator has tied up with SIDBI?
iii. Which incubator is tied up with DST?
34. Fill ups. (any one) (1x2)
1. Business incubators provide Physical facility such as
_________ and ____________
2. Business incubation as business support service provides
______________ and ______________ .
3 Complete the statements: (any two) (1x2)
5 i. Start-up Village is a
________________________________
ii. Techno Park TBI
__________________________________
iii. Atal Incubation Centre
______________________________
SECTION-C
Answer Qu. 36 to 51 below. Internal choices have been given
wherever necessary.
36. Do you think that entrepreneurship can be chosen as a career (2)
option? If yes, mention any four factors make individuals choose
entrepreneurship as a career option.
37. i. “Time is changing and entrepreneurship is no more restricted to (2)
a gender” Enumerate the concept of women entrepreneurship in
the light of the given statement.
OR
ii. Explain the role and importance of the government in
promoting a healthy entrepreneurial environment in India.
38. “Angel’s investors avoid investing in small start-ups or (2)
entrepreneurs” Do you agree with the given statement? Explain
why?
39. i. “Service sector provides services rather than providing tangible (2)
goods”. Do you agree with the given statement? If yes, give two
examples of services.
OR
ii. Write a short note on State Financial Corporations (SFCs).

40. Can you mention the focus areas (any four) to promote and (2)
strengthen ease of doing business in India?
41. i. You stay in Kochi and want to become a student entrepreneur (2)
and also want your friends to join you in entrepreneurship. Which
incubator would you approach for help?
OR
ii. How is NABARD useful for development of entrepreneurship?

42. Enumerate any three types of entrepreneurs on the basis of risk. (3)

43. i. Do you think it is advantageous to indulge into self-employment (3)

rather than a job? If yes, list out three advantages of self not. If
not, list out four disadvantages of self-employment.
OR
ii. Why are entrepreneurs important in socio-economic
development?
44. “The six thinking hats technique advocates thinking about a (3)
problem or opportunity not by one perspective but by six different
perspectives” If you agree with the given statement mention the
colour of these hats and what do they represent.
45. i. What is locus of control? How is a person having internal locus (3)
of control different from a person having external locus of
control?
OR
ii. Classify Human Motives and describe each type.
46. What do you understand by Private Equity Funds? Mention one (3)
advantage and one disadvantage of Private Equity Funds.
47. i. Your friend is going to participate in a debate competition on (3)
the topic “Micro, small and medium enterprises are the pillars of
economic growth” but does not know what exactly is MSME.
Help your friend by enumerating definition of MSME in India.
OR
ii. Identify the various central government organizations
responsible for entrepreneurship development in the country?
Explain about any two organizations in details.
48. If creativity is the capacity to produce ideas that are both new and (5)
useful through divergent thinking how can one increase the
creative power of an individual and group through different
techniques?
49. i. Need hierarchy theory suggests one need is more urgent at one (5)
point of time than others. Explain the statement with the help of
the pyramidical structure of Maslow’s need hierarchy theory.

OR
ii. Companies practice ethics on their own to maintain their
reputation and higher standards in the market. Discuss the factors
that factors govern business ethics.
50. “Resource mobilisation refers to the coordination of all activities (5)
involved in securing new and additional resources for an
organisation.” In the light of this statement explain the human and
physical resource mobilisation of an organization.
51. i. Do you think business incubation has emerged as an (5)
organization established to accelerate the growth and success of
an entrepreneur through various kinds of support? If yes, explain
the role of business incubators to support your answer.
OR
ii. Discuss the Role of government organizations in
Entrepreneurship development of the country.
 Entrepreneurship (249)
Suggestive Marking Scheme

Section-A
Ques Details Notes Marks
No.
1 A 1
2 i.D 1
ii.B
3 C 1
4 i.A 1
ii.C
5 C 1
6 i.C 1
ii.D
7 i.A 1
ii.D
8 C 1
9 i.C 1
ii.B
10 D 1
11 A 1
12 D 1
13 D 1
14 i.C 1
ii.A
15 i.D 1
ii.B
16 B 1
17 i.A 1
ii.B
18 B 1
19 i.D 1
ii.A
20 i.D 1
ii.B
Section-B
21 i. a 1x2
ii.- d
iii.- c
22 i.rural, urban 1x2
ii.profitable, migratory
23 i.IPR 1x2
ii.Market share
 iii.Brainstorming
24 i.True 1x2
ii.False
ii.True
25 i.Motivation 1x2
ii.Physiological
iii.subconsciously
26 i. Maslow’s Theory of Hierarchial Needs, Mc 1x2
Clelland’s Theory of Needs
ii. The person’s status/position in the organization
iii. Individuals drive their destiny
27 i. Land, building 1x2
ii. Technical know-how
iii. Trade secrets
28 i. Owner’s funds, money lender’s funds 1x2
ii. Incubator funds, venture capital
29 i. True 1x2
ii. True
iii. True
30 i. C 1x2
ii. B
iii. A
31 i. The Partnership Act, 1932 /Registrar of Company 1x2
ii. The Cooperative Societies Act, 1912 /Registrar of
Cooperatives
32 i. One crore, five crore 1x2
ii. 10 crore, fifty crore
33 i. Innovation and Technology Transfer, 2000 1x2
ii. Indian Angel Network
iii. Techno Park
34 i. Rental space, electricity 1x2
ii. Marketing assistance, access to loans
35 i. Public private enterprise run by Govt. of Kerala 1x2
ii. Is India’s first non academic business incubator
iii. Is government of India’s flagship initiative to
promote culture of innovation and entrepreneurship
in the country.
Section-C
36 Factors which make individuals choose entrepreneurship as a Any four 2
career:
1.Frustration or dissatisfaction in the present job
2. Displacement form a job
3. Not getting a job of choice or difficulty in finding a job
4. Realizing the present job is in jeopardy due to moving towards
closure
5. Desire to start own business due to new business opportunity
6. Conducive atmosphere including family history of
 entrepreneurship, financial stability, availability of infrastructure
37 i. Women Entrepreneurship 2
The Government of India defines women entrepreneurship as, “a
business enterprise which is owned, managed and controlled by
women having a minimum financial interest of 51 per cent of the
capital and giving at least 51 per cent of employment generated in
the enterprises to women.” Schumpeter defines women
entrepreneurship as, “based on women’s participation in equity and
employment of a business enterprise.”

ii. To boost the enthrusiasm of entrepreneurs, Central and state

governments are providing assistance by way of infrastructure,
finance, marketing, training, technology, research and other
verticals. Ministry of MSME, Ministry of Skill Development &
Entrepreneurship, Ministry of Rural Development, Ministry of
Agriculture & Family Welfare, Department of Science and
Technology, Ministry of Food Processing Industries, Ministry of
Corporate Affairs, Ministry of Commerce and Industry, Ministry of
Textiles, etc. are promoting Entrepreneurship by providing
incentives and implementing various schemes for entrepreneurs.
38 Disagree 2
Angel’s investors invest in small start-ups or entrepreneurs.
They are typically one of the earliest equity investments made
in new startup companies usually in exchange for convertible
debt or ownership equity. The angel investor is defined as “an
individual who invests in small start-ups or entrepreneurships.”
Angels are high net worth individuals who invest their
personal funds instart-ups.
39 i.Retail, banks, hotels, real estate, education, health, social care, Any Two 2
computer services, recreation, media, communications, electricity,
gas and water supply

ii.: In order to provide financial assistance to all types of industrial

enterprises (proprietary and partnership firms as well as companies)
most of the states of our country have set up SFCs. The primary
objective of these corporations is to accelerate the pace of industrial
development in their respective states. SFCs provide finance in the
form of long-term loans or through subscription of debentures, offer
guarantee to loans raised from other sources and take up
underwriting of public issues of shares and debentures made by
companies.
40 EoDB focus areas Any four 2
Starting a Business
Dealing with Construction Permits
Getting Electricity
Registering Property
Getting Credit
Protecting Minority Investors
Paying Taxes
Trading across Borders
 Enforcing Contracts
Resolving Insolvency

41 Start-up Village 2
It is a not-for-profit business incubator in Kochi. It was started in
April 2012. Start-up Village is a public-private enterprise run by
Government of Kerala. The government earmarked Rs.100 crore for
Start-up Village and wants to incubate over a thousand start-ups in
10 years. Interestingly, student entrepreneurs are offered various
perks to be a part of this incubator including getting attendance at
college, grace marks and even tax exemption for business generated
by start-ups incubated within Start-up Village premises.

ii.National Bank for Agriculture and Rural Development

(NABARD):The basic goal of this bank is rural development
through rural business, agricultural support, development of small
industries, cottage and village industries, and other related issues.
42 i. Based on Risk 3
(a) Innovative Entrepreneurship Entrepreneur comes up with new
ideas and turns them into viable business and find new ways to
market the products that make their business stand out from the
crowd and sometimes create a new crowd. Examples are Steve Jobs
and Bill Gates.
(b) Imitative Entrepreneurship implements current techniques
from which they copy certain business ideas and improve upon them
as to gain an upper hand in the market. Imitative entrepreneurship is
characterized by the adoption of exogenously changing technologies.
Examples are development of small shopping complexes and small
car manufacturers.
(c) Fabian Entrepreneurship is concerned with such business
organizations in which the individual owner does not take initiative
in visualizing and implementing new ideas and innovation. Dealings
are determined by customs, religion, trading and past practices. They
are not too interested in taking risks or changes and they try to
follow the beaten track created by their predecessors.
(d) Drone Entrepreneurship is concerned with such businesses in
which owners are satisfied with the existing mode and speed of
business activity and show no inclination in gaining market
leadership. They refuse to make any modification in the existing
production methods inspite of incurring recurring losses.

43 i. Any three 3
Advantages: points of
 Freedom to choose exact type of work either
 Flexible working hours advantages or
 Educational degrees or certificates are optional disadvantages
 Potential to make an unlimited amount of money
 No formal leave or retirement dates
 Get the benefits of tax deduction and exemption under tax
laws
  Self-esteem of being capable as a professional
Disadvantages:
 Busy business schedule each day
 Business income varies, but expenses are more constant
 Stressful for business success
 No enjoyment of formal retirement planning

ii.
i. Mobilisation of Capital
ii. Generation of Employment:
iii. Forward and Backward Linkages:
iv. Balanced Regional Development:
v. Equal distribution of Economic Power:
vi. Increase in Per Capita Income:
vii. Better Standard of Living:
viii. Import Substitution and Export Promotion
44 The hats and its colour represents the following: 3
 White hat: neutral
 Red hat: fire, warmth
 Black hat: caution
 Yellow hat: sunshine
 Green hat: growth
 Blue hat: sky
45 i.Locus of control is the extent to which an individual believes s/he 3
has control over the outcomes of her/his actions in life. Individuals
may have internal locus of control or external locus of control.
Individuals with internal locus of control believe that they drive their
destinies.They believe that whatever results they derive in life are
due to their own actions.
On the other hand, individuals with external locus of control blame
or praise external factors rather than their own efforts.

ii.Human motives give a reason to do something. Motives drive

human beings to go ahead. For example, if you want to become a
dancer, you have to dance and strive towards mastery in atleast one
dance form. Human motives are broadly classified as: 1. Biological
motives or physiological motives: These are basic motives and these
are needed to satisfy human needs. Example:thirst, hunger. You
need water to satisfy your thirst and food to satisfy your hunger. 2.
Psychosocial or social motives: These are mostly acquired from
family, friends, social groups, etc. These needs arise from: i. Need
for affiliation ii. Need for power iii. Need for achievement 3.
Curiosity and exploration: The curiosity to explore more and search
for better techniques will always fuel motivation.
46 Meaning: Private equity fund is a collective investment scheme. It 3
is typically a limited liability partnership contract with a term of 10
years, generally with annual renewals. In other words, private equity
is an alternative investment class and consists of capital that is not
listed on a public exchange market. It comprises of funds and
 investors that directly invest in private companies.
Advantages
1. Allows firms more liquidity unlike other conventional modes of
funds i.e. high risk bank loans, or listing to public exchanges.
2. Certain specific private equities finance new ideas and provide
funding at initial stages.
Disadvantages
1. It can be difficult to liquidate holdings if the firm winds up. 2.
Prices of shares of the company are determined by mutual
negotiations between buyers and sellers and not by market demand
and supply forces, which mostly leads to under-pricing of the
holdings.
47 i. 3
1. a micro enterprise, where the investment in Plant and Machinery
or Equipment does not exceed one crore rupees and turnover does
not exceed five crore rupees;
2. a small enterprise, where the investment in Plant and Machinery
or Equipment does not exceed ten crore rupees and turnover does not
exceed fifty crore rupees;
3. a medium enterprise, where the investment in Plant and
Machinery or Equipment does not exceed fifty crore rupees and
turnover does not exceed two hundred and fifty crore rupees.

ii.Some of the important government organisations:

1. District Industries Centres (DICs)
2. MSME Development Institutes (MSME-DIs)
3. Khadi and Village Industries Commission (KVIC)
4. National Small Industries Corporation (NSIC)
5. National Bank for Agriculture and Rural Development
(NABARD)
6. Small Industries Development Bank of India (SIDBI)
7. State Financial Corporations (SFCs)
8. Skill Development Centres
9. Entrepreneurship Development Institutes
10. Export Promotion Councils and Commodity Boards

A)National Bank for Agriculture and Rural Development

(NABARD) is an agricultural and rural development bank owned by
Government of India. It looks after the development of the rural- and
agriculture-based small industries in the country. NABARD has
schemes for both farm and off-farm sectors.

B)National Small Industries Corporation (NSIC) is a Government of

India Enterprise under Ministry of Micro, Small and Medium
Enterprises (MSME). It operates through a countrywide network of
offices and Technical Centres in the country. NSIC helps MSMEs by
providing marketing support like tender marketing. NSIC also does
Single Point Registration for Government Purchase. It provides
marketing intelligence to MSMEs, organises exhibitions and
technology fairs and buyer-seller meets.
48 Techniques of enhancing creativity 5
 Brainstorming: This technique was developed by Alex F.
Osborn in 1957. Brainstorming means, a team of members
generates a large amount of alternative fruitful ideas on a
specific problem without any criticism and then evaluates
each idea with pros and cons. This is done with the active
cooperation of team mates and the chairperson, and makes a
comprehensive checklist to eliminate the ideas that are
clearly unworkable but retain all that is worth further
consideration.
 Mind-mapping: This technique was developed by Tony
Buzan and is also called spider diagram drawn to represents
ideas and notes in continuous tree-diagrams. Mind maps are
drawn on paper or a white board. The starting point is the
central idea written at center of a large paper or white board
representing the theme for which the mind-map is to be
drawn. Then, subtopics are written as an extension of the
main topic representing a separate branch of the tree
emerging from the central topic. Further the same way keeps
adding sub-topics and next levels finer sub-branches. Ideas
can be put at more than one place and then be linked to show
relationships and also using colour pencils further
relationships van be shown.
 Lateral thinking: This term was coined in 1967 by Edward
de Bono who suggests that solutions to problems can be
found by unorthodox methods. When a problem is
presented, the audience is asked to think laterally as to how
similar problems are solved in different settings. Thus,
lateral thinking means, leaving behind traditional modes of
thought and throwing away preconceptions. It is a method of
solving problems through an indirect and creative approach.
49 i.Maslow’s Need Hierarchy Theory 5
1. Physiological Needs: These needs pertain to the survival of
human beings like food, shelter, clothing, air and water. These needs
are the starting point for motivation theory.
2. Safety and Security Needs: People want a certain level of
security in their lives to maintain a given economic level. Safety
needs include both physical and economic safety. Physical needs
may include safety from diseases and accident while economic
safety implies security of income and provisions for old age.
3. Social Needs: Humans are social animals. They need to interact,
to share their feelings, to exchange thoughts and ideas, to share joys
and sorrows. So as soon as the first two needs are satisfied, we start
looking for some sort of companionship.
4. Ego Needs: Ego needs can be of two types. They can be internally
located or externally located. Internally oriented needs include self-
confidence, knowledge and competence while external ego needs are
related with the feeling of status or prestige that one commands by
virtue ofher/his position.
5. Self-Fulfilment Needs: This is a need to be fulfilled as a mission
 of life. This need, if satisfied, results in psychological satisfaction.
After the four needs are fulfilled the person has desire for personal
achievement.

ii.The following factors govern business ethics:

1. Legislative framework: In earlier times, ethics were followed
voluntarily, but due to many unethical practices, laws came into
force. These laws provide basic standards for any organisation to be
followed.
2. Regulatory framework of the government: The government from
time to time check whether the business houses are following ethical
practices or not. The government sets the minimum basic standards
for product quality, weight, etc. The government also do
campaigning to make customers aware about the corporate defaults.
For Example, Jago Grahak Jago campaign.
3. Corporate ethical codes: Most of the times, companies plan out
their own ethical standards to be followed. These standards are
circulated to all employees in the organisation and must be followed
by them.
4. Societal obligations: Social pressures have significantly impacted
the ethical structure of any corporate. For example, Maternity leave.
5. Entrepreneurial vision and mission: The vision and mission of any
entrepreneur also influence the ethical standards of his business. For
Example, Tata is known for its ethical standards.
50 Human Resource 5
After finance, it is the most important resource which utilises other
resources. The success of an organisation heavily depends upon the
skills and abilities of the human resource employed by them. Thus,
human resource employment decision should be taken carefully.
Acquiring the right number of employees of a right type and placing
the right person is the challenge which is being taken up by the
entrepreneur under this category. It includes skilled as well as
unskilled employees through all hierarchical rungs.
Human resource management looks forward to settle the following
aspects: • Total manpower required • Identifkey key required skills •
Need for training and development • Legal compliances attached
with mobilising human resource • Estimation of future demand

Physical resources
The physical resource mobilisation process development broadly
depends upon the needs of business structure. Some businessesdo
not require much more physical resources like a mobile app
programmers whereas some manufacturing units require a huge
physical resource investment like sugar industry, oil refineries etc.
Also the quantum of physical resources depends on the size of the
organisation too. Larger the firm, higher would be the requirement
and vice versa. For example Amazon and Wal-Mart heavily rely on
physical resource in terms of warehouses, stores and human resource
workplaces as they are one of the biggest business giants in there
industry
The physical resource mobilisation broadly includes considering the
 following aspects: • Infrastructure • Land and building • Plant and
machinery • Technological know-how • Franchise • Lease agreement
or acquisition • Furniture and fixtures
51 i.Role of business incubators 5
Physical facility support: Business incubators provide a) Physical
facility eg. Rentalspace, electricity, high speed internet access,
market research facilities, conference hall facilities.
Support service: Business incubation as business support service
like (a) They provide Marketing assistance. (b) Providing access to
bank loans, loan funds and guarantee. (c) Incubators help with
presentation skills. (d) They link to higher education resources. (e)
They link to strategic partners. (f) They provide Access to angel
investors or venture capital. (g) They organise comprehensive
business training programmes. (h) They act as Advisory boards and
mentors. (i) They help in Management team identification. (j) They
help with business etiquette. (k) They provide technology
commercialisation assistance. (l) They help with regulatory
compliance. (m) They provide Intellectual property management. (n)
Incubators help in accounting facilities/financial management (o)
Incubators help in Market Research
Networking facilities: Business incubators provide networking
facilities to the members. It encompasses a set of relationships with
various agents or organisations. Building networks shortens and
accelerates the firms’ learning process.

ii.Entrepreneurs contribute to the socio-economic development of

any country by providing employment, regional development,
promoting exports, improving the Balance of Payment, developing
small scale units and rural industries, to mention a few. To boost the
enthrusiasm of entrepreneurs, Central and state governments are
providing assistance by way of infrastructure, finance, marketing,
training, technology, research and other verticals. Ministry of
MSME, Ministry of Skill Development & Entrepreneurship,
Ministry of Rural Development, Ministry of Agriculture & Family
Welfare, Department of Science and Technology, Ministry of Food
Processing Industries, Ministry of Corporate Affairs, Ministry of
Commerce and Industry, Ministry of Textiles, etc. are promoting
Entrepreneurship by providing incentives and implementing various
schemes for entrepreneurs. Some of the government support
measures and institutes for entrepreneurial growth are:
1. National Bank for Agriculture and Rural Development
(NABARD):The basic goal of this bank is rural development
through rural business, agricultural support, development of small
industries, cottage and village industries, and other related issues.
2. Rural Small Business Development Centre (RSBDC): It assists
small and medium enterprises and socially and economically
disadvantaged individuals and groups.
3. National Small Industries Corporation (NSIC):Its basic aim is the
growth of small business units. It helps to procure, supply and
distribute indigenous and imported raw materials. It also helps to
develop software technology parks and create awareness about
technology upgradation.
4. Small Industries Development Bank of India (SIDBI): It provides
financial assistance to small entrepreneurs and business
organisations to meet their credit requirements.
5. The National Commission for Enterprises in the Unorganized
Sector (NCEUS): It helps in generating more employment
opportunities in rural areas and also to enhance the competitiveness
of the sector in the changing world.