CMAT- 2025

CMAT- 2024

Innovation &
Entrepreneurship
LECTURE-2
 CMAT- 2024
CMAT- 2025

Subject No of questions Maximum marks

Quantitative Techniques
20 80
and Data Interpretation

Language
20 80
Comprehension
Logical Reasoning 20 80
General Awareness 20 80
Innovation &
20 80
Entrepreneurship
Total 100 400
 CMAT- 2024
2025
CMAT Syllabus for Innovation and Entrepreneurship Section
• Important terms related to Innovation and Entrepreneurship .
•Idea generation & Prototype Development.
• Investment, Angel, VC fund system.
• Govt. Schemes and funding support to ideas, innovations, and startup.
• Current trends, development and general awareness on Innovation and
startup.
• Social Innovation and Entrepreneurship.
• Intellectual Property Right (IPR) & Patents.
• Commercialization of Innovations.
• Startup and Venture development.
• Pre-incubation and Incubation Stages.
CMAT- 2025
2024
 CMAT- 2025
CMAT- 2024
Innovation life Cycle
According to a study by Jaruzelski, Dehoff, and Bordia, the innovation process can be
broken down into four key stages:
1.Ideation: This stage involves the generation of new ideas and the basic research and
conception necessary to develop those ideas.
2. Project selection: In this stage, a decision is made to invest in one or more of the ideas
generated during the ideation stage, based on factors such as market potential, technical
feasibility, and alignment with the company's overall strategy.
3. Product development: This stage involves building the product or service, including
testing, prototyping, and refinement. The goal is to create a viable product that meets
customer needs and can be manufactured at scale.
4.Commercialization: This final stage involves bringing the product or service to market,
adapting it to customer demands, and scaling up production and distribution to achieve
widespread adoption.
 CMAT- 2025
CMAT- 2024

4 Stages of Innovation
Ideation – Basic research and conception.
Project Selection – The decision to invest.
Product Development – Building the product or service.
Commercialization – Bringing the product or service to market and adapting it to customer
demands.
These stages are not always linear, and there may be some overlap or
iteration between them. However, they provide a useful framework for
understanding the process of innovation and the key milestones that
companies must achieve to bring new products or services to market.
CMAT- 2025
CMAT- 2024
CMAT- 2025
CMAT- 2024
 CMAT- 2025
CMAT- 2024

Seed capital assistance is a form of funding provided to

startups or entrepreneurs in the early stages of their
business to help them get off the ground. It is typically
used to finance the initial research and development
phase of a business or to cover the costs associated with
market testing a new product or service.
 CMAT- 2025
CMAT- 2024

• It is generally much smaller than the amounts provided

through other forms of startup funding, such as angel
investment or venture capital.
• The goal of seed capital assistance is to help new businesses
overcome the challenges associated with getting started, and
to provide them with the resources they need to develop and
test their products or services. By providing early-stage
funding, seed capital assistance programs help to support the
growth of innovative startups and contribute to the overall
health of the economy.
CMAT- 2025
CMAT- 2024
CMAT- 2025
CMAT- 2024
 CMAT- 2025
CMAT- 2024
There are several types of business ventures, including:
Sole Proprietorship: This is a type of business owned and operated by a single individual.
The proprietor is personally responsible for all the debts and obligations of the business.
Partnership: This is a type of business owned and operated by two or more individuals.
Each partner is responsible for the debts and obligations of the business.
Limited Liability Company (LLC): An LLC is a type of business structure that combines the liability
protection of a corporation with the tax benefits of a partnership. It is a hybrid business entity that
provides the owners (also called members) with limited liability protection, which means that
their personal assets are protected from the company's debts or legal liabilities.
Limited Liability Partnership (LLP): In an LLP, each partner has limited liability for the actions of the
other partners, but is not personally responsible for the debts and obligations of the business. LLPs
are often used by professional service firms such as law firms, accounting firms, and consulting
companies.
 CMAT- 2025
CMAT- 2024
2. What is the difference between perfect competition
and monopolistic competition?
A) Perfect competition has a large number of small firms
while monopolistic competition does not.
B) In perfect competition, firms produce identical goods, while
in monopolistic competition firms produce slightly different
goods.
C) Perfect competition has no barriers to entry, while
monopolistic
competition does.
D) Perfect competition has barriers to entry while
monopolistic competition does not.
CMAT- 2025
CMAT- 2024
CMAT- 2025
CMAT- 2024
CMAT- 2025
CMAT- 2024
CMAT- 2025
CMAT- 2024
 CMAT- 2025
CMAT- 2024
A monopoly is a market structure where a single firm
controls the entire market for a particular product or
service. In a monopoly, the company has a
significant amount of market power and can set
prices higher than in a competitive market. This is
because there are no close substitutes for the
product, and consumers have no other options but
to buy from the single company. Monopolies are
generally considered to be negative for consumers, as
they can lead to higher prices and reduced choice.
However, some argue that monopolies can be
beneficial in certain cases, such as in natural
monopolies where it is more efficient to have a single
company providing the service.
 CMAT- 2025
CMAT- 2024

3.Which of the following market types has all firms

selling products so identical that buyers do not care from
which firm they buy?

A)perfect competition
B) oligopoly
C) monopolistic competition
D) monopoly
 CMAT- 2025
CMAT- 2024

4) Perfect competition is characterized by all of the

following EXCEPT
CMAT- 2025
CMAT- 2024
CMAT- 2025
CMAT- 2024
 CMAT- 2025
CMAT- 2024

Ecopreneur is a term used to describe an entrepreneur who starts and

grows a business that has a positive impact on the environment. An
ecopreneur is a person who is committed to environmental sustainability,
social responsibility, and economic viability. An ecopreneur starts a
business that makes a positive contribution to the environment, society,
and the economy, and is built around principles of sustainability.
Examples of ecopreneurial companies include Patagonia, a clothing
company that is committed to sustainable and ethical practices, and Tesla,
a company that produces electric vehicles and is committed to reducing
carbon emissions.
 CMAT- 2025
CMAT- 2024
A technopreneur is an entrepreneur who specializes in using technology to
create, deliver, and sell innovative products or services. They are focused on
building businesses that are centered around technology and are typically very
innovative and technically skilled. The term "technopreneur" is often used to
describe entrepreneurs who work in high-tech industries, such as software
development, biotechnology, or robotics. These individuals often have a deep
understanding of both technology and business, and are able to apply this
knowledge to create successful and innovative companies.
Some examples of successful Indian technopreneurs include:
Naveen Tewari, founder of InMobi - a mobile advertising platform
Bhavish Aggarwal, founder of Ola - an Indian ride-hailing company
Vijay Shekhar Sharma, founder of Paytm - a digital wallet and e-commerce platform
Sachin Bansal and Binny Bansal, founders of Flipkart - an e-commerce platform
Kunal Bahl and Rohit Bansal, founders of Snapdeal - an online marketplace.
CMAT- 2025
CMAT- 2024
 CMAT- 2025
CMAT- 2024

Entrepreneurship Development Programme (EDP) is designed to develop

entrepreneurial skills and create awareness among first-generation
entrepreneurs. These programs aim to provide the participants with the
necessary knowledge, skills, and training to start and run a successful business
venture. EDPs are also beneficial for individuals who are planning to start a
business but have no prior experience or knowledge of entrepreneurship. So,
yes, EDPs are typically designed for first-generation entrepreneurs.
CMAT- 2025
CMAT- 2024
CMAT- 2025
CMAT- 2024
 CMAT- 2025
CMAT- 2024

The Industrial Development Bank of India (IDBI) was the first development
bank of India. It was established in 1964 as a wholly-owned subsidiary of
the Reserve Bank of India to provide credit and other facilities for the
development of industry in India. IDBI was converted into a full-fledged
commercial bank in 2004 and is now known as IDBI Bank Limited.
CMAT- 2025
CMAT- 2024
 CMAT- 2025
CMAT- 2024

The Industrial Finance Corporation of India (IFCI) is a

government-owned non- banking financial company in India. It
was the first Development Financial Institution of the country,
founded in 1948 to provide medium and long-term credit to
Indian businesses. Its objective is to support industrial growth
and economic development in the country.
CMAT- 2025
CMAT- 2024