Samacheer Kalvi 12th Commerce Chapter 25 Government Schemes for Entrepreneurial Development Exercise Solutions

How to Use This Page

This page provides complete exercise solutions for Chapter 25: Government Schemes for Entrepreneurial Development from the Tamil Nadu State Board Class 12 Commerce textbook.

• Start with the Key Concepts table to quickly revise definitions before attempting questions.
• MCQs help you test recall of facts, dates, and scheme names — read all four options carefully before choosing.
• Fill in the Blanks and True/False check precise knowledge of provisions, expansions, and thresholds.
• Match the Following connects schemes to their purposes — practice these to avoid mixing up similar-sounding schemes.
• Brief and Detailed answers follow the textbook language; use the sub-point format in exams for maximum marks.
• Common Mistakes highlights frequent errors students make — review these before your exam.
• Exam Checklist at the end is a final revision tool; tick off each item you are confident about.

Key Concepts (Quick Recap)

I. Choose the Best Answer (MCQs)

Textbook MCQs

Q1. Which scheme was launched to modernize the Indian economy electronically?

• a) Make in India   b) Startup India   c) Digital India   d) Stand up India

Q2. Which scheme aims to transform India into a global design and manufacturing hub?

• a) Digital India   b) Make in India   c) Startup India   d) AIM

Q3. Which scheme promotes innovation and entrepreneurship?

• a) AIM   b) M-SIPS   c) Digital India   d) PMKVY

Q4. A project report must cover finance, know-how, labour, raw material, market, and

• a) Government policy   b) Competition   c) Project Report   d) Location

Q5. A mechanism for managing the venture must include

• a) Capital   b) Labour   c) Market   d) Entrepreneur

Additional MCQs

Q6. Atal Incubation Centres were launched in

• a) 2014   b) 2015   c) 2016   d) 2017

Q7. NSDM was launched in

• a) January 2015   b) March 2015   c) June 2015   d) July 2015

Q8. Make in India was launched in

• a) September 2014   b) October 2014   c) January 2015   d) March 2015

Q9. A Project Report is prepared by

• a) Entrepreneur   b) Professional   c) Institution   d) Any one of the above

Q10. Odd one out: Startup India, Make in India, Khelo India, Digital India

• a) Startup India   b) Khelo India   c) Make in India   d) Digital India

Q11. Odd one out: PMKVY, NSDM, STEP, PSU

• a) PMKVY   b) NSDM   c) STEP   d) PSU

Q12. An entrepreneur must apply for

• a) Power connection   b) Statutory License   c) Permanent Registration Certificate   d) All of the above

Q13. NEEDS was launched by

• a) Central Government   b) State Government   c) Both   d) None

II. Fill in the Blanks

1. Startup India was launched in the year 2016. 2. Make in India was launched in September 2014 to transform India into a global design and manufacturing hub. 3. JAM stands for Jan Dhan Aadhaar Mobile. 4. The Provisional Registration Certificate is valid for one year and can be renewed for two periods of six months each. 5. M-SIPS provides a capital subsidy of 20-25% for manufacturing in specified industries. 6. New Gen IEDC provides financial assistance of up to Rs 25 lakhs to educational institutions. 7. Stand up India provides bank loans between Rs 10 lakh and Rs 1 crore to SC/ST and women entrepreneurs. 8. SEED stands for Science for Equity Empowerment and Development. 9. The entrepreneur must apply to the Assistant Divisional Engineer of the State Electricity Board for obtaining a power connection. 10. PMKVY stands for Pradhan Mantri Kaushal Vikas Yojana. 11. NSDM stands for National Skill Development Mission, launched in July 2015. 12. The scheme that provides credit and training pathways specifically for women entrepreneurs is TREAD. 13. SPRS stands for Simplified Proforma for Registration Scheme. 14. Atal Incubation Centres were launched in 2016 by NITI Aayog. 15. A project report must cover finance, know-how, labour, raw material, market, profitability, and management mechanism.

III. True or False (with corrections)

IV. Match the Following

Match Q1.

Match Q2.

V. Assertion and Reason

Assertion (A): Provisional registration is issued for one year, renewable for two periods of six months. Reason (R): The entrepreneur needs time to set up the venture and obtain permanent registration. Answer: Both A and R are true, and R correctly explains A. The entrepreneur requires a reasonable period to complete formalities before the venture becomes fully operational, hence the provisional certificate with renewal provisions.

Assertion (A): JAM (Jan Dhan Aadhaar Mobile) eliminates middlemen in subsidy distribution. Reason (R): JAM enables direct transfer of subsidies to beneficiaries' bank accounts linked through Aadhaar. Answer: Both A and R are true, and R correctly explains A. Direct Benefit Transfer through the JAM trinity ensures subsidies reach the intended beneficiaries without intermediaries.

Assertion (A): NEEDS is a Central Government scheme for entrepreneur development. Reason (R): NEEDS provides financial assistance to new entrepreneurs at the state level. Answer: A is false but R is true. NEEDS is a State Government scheme, not a Central Government scheme. It provides financial assistance to new entrepreneurs, but at the state level.

VI. Answer Briefly (2-mark)

Q1. Name four Government schemes for entrepreneurial development. 1. Startup India 2. M-SIPS (Modified Special Incentive Package Scheme) 3. New Gen IEDC (New Gen Innovation and Entrepreneurship Development Centre) 4. Dairy Entrepreneurship Development Scheme

Q2. What is Digital India? Digital India was launched to modernize the Indian economy, make government services available electronically, and promote paperless transactions. It aims to create digital infrastructure and deliver government services digitally to citizens. The scheme has nine pillars including broadband highways, universal access to mobile connectivity, and e-governance.

Q3. Name the types of finance available to entrepreneurs. 1. MSMEs (Micro, Small and Medium Enterprises) 2. NEEDS (New Entrepreneur-cum-Enterprise Development Scheme) 3. SHG (Self Help Groups)

Q4. What is SEED? SEED (Science for Equity Empowerment and Development) provides opportunities to motivated scientists and field workers for action-oriented, location-specific projects targeting the poor in rural areas.

Q5. What is the period of Provisional Registration Certificate? A Provisional Registration Certificate is issued for one year and is renewable for two periods of six months each. The maximum total validity is two years.

Q6. How does an entrepreneur apply for a power connection? The entrepreneur must apply to the Assistant Divisional Engineer of the State Electricity Board for obtaining a power connection for the venture. 1. Startup India 2. M-SIPS (Modified Special Incentive Package Scheme) 3. New Gen IEDC (New Gen Innovation and Entrepreneurship Development Centre) 4. Dairy Entrepreneurship Development Scheme

Q2. What is Digital India? Digital India was launched to modernize the Indian economy, make government services available electronically, and promote paperless transactions. It aims to create digital infrastructure and deliver government services digitally to citizens.

Q3. Name the types of finance available to entrepreneurs. 1. MSMEs (Micro, Small and Medium Enterprises) 2. NEEDS (New Entrepreneur-cum-Enterprise Development Scheme) 3. SHG (Self Help Groups)

Q4. What is SEED? SEED (Science for Equity Empowerment and Development) provides opportunities to motivated scientists and field workers for action-oriented, location-specific projects targeting the poor in rural areas.

Q5. What is the period of Provisional Registration Certificate? A Provisional Registration Certificate is issued for one year and is renewable for two periods of six months each. The maximum total validity is two years.

Q6. How does an entrepreneur apply for a power connection? The entrepreneur must apply to the Assistant Divisional Engineer of the State Electricity Board for obtaining a power connection for the venture.

VII. Answer in Detail (5-mark)

Q1. Explain five Government entrepreneurial schemes. 1. Startup India (2016): Promotes entrepreneurship through mentoring, nurturing, and facilitating startups. A fund of funds has been created to provide financial support. Tax exemptions and self-certification compliance are provided. 2. Stand up India (2015): Provides credit to SC/ST and women entrepreneurs. Bank loans between Rs 10 lakh and Rs 1 crore are given to at least one SC/ST borrower and one woman borrower per bank branch. 3. Make in India (2014): Aims to transform India into a global design and manufacturing hub. Encourages domestic and foreign companies to manufacture in India. 4. Digital India: Modernizes the Indian economy and makes government services available electronically. Promotes paperless transactions and digital infrastructure. 5. JAM (Jan Dhan Aadhaar Mobile): Enables direct transfer of subsidies to beneficiaries, eliminating middlemen and ensuring transparency.

Other important schemes:

• AIM (Atal Innovation Mission): Promotes a culture of innovation and entrepreneurship.
• M-SIPS: Provides 20-25% capital subsidy for manufacturing in specified industries.

Q2. Explain the steps that promote an entrepreneurial venture. 1. Selection of product: Identifying the product or service to be manufactured or offered. 2. Selection of form of ownership: Choosing sole proprietorship, partnership, or company structure. 3. Selection of site: Choosing the location based on availability of raw materials, labour, transport, and market. 4. Designing capital structure: Determining the proportion of owned capital and borrowed capital. 5. Acquisition of manufacturing know-how: Obtaining the technical knowledge and processes for production. 6. Preparation of project report: Preparing a detailed report covering finance, know-how, labour, raw material, market, profitability, and management mechanism.

Q3. Write short notes on the following:

New Gen IEDC: New Gen Innovation and Entrepreneurship Development Centre provides financial assistance of up to Rs 25 lakhs to educational institutions for developing entrepreneurial culture among students and promoting innovation.

PMKVY (Pradhan Mantri Kaushal Vikas Yojana): A skill certification and reward scheme that provides skill training to youth. It aims to enable a large number of Indian youth to take up industry-relevant skill training.

AIC (Atal Incubation Centres): Launched in 2016 by NITI Aayog. Atal Incubation Centres provide incubation facilities and support to startups and innovators.

SEED: Science for Equity Empowerment and Development provides opportunities to motivated scientists for action-oriented, location-specific projects in rural areas.

TREAD: Trade Related Entrepreneurship Assistance and Development provides credit, training, and development pathways for women entrepreneurs.

NSDM (National Skill Development Mission): Launched in July 2015 as part of the Skill India initiative. Aims to create a skilled workforce across sectors.

STEP: Support to Training and Employment Programme provides formal skill training and employment opportunities, especially for women in rural India.

SPRS: Simplified Proforma for Registration Scheme provides registration for micro and small enterprises with exemption from Earnest Money Deposit (EMD).

Q4. Explain the preparation needed for starting a project. 1. Technical feasibility: Assessing whether the required technology and machinery are available. 2. Economic viability: Ensuring the project is profitable and contributes to the economy. 3. Financial viability: Arranging adequate capital — owned funds, borrowed funds, and working capital. 4. Managerial competency: Ensuring the entrepreneur has the skills to manage the venture. 5. Registration certificates: Obtaining Provisional Registration Certificate (valid for one year, renewable for two periods of six months). 6. Statutory license: Obtaining the necessary licences and permits from local and state authorities. 7. Power connection: Applying to the Assistant Divisional Engineer of the State Electricity Board. 8. Finance arrangement: Arranging funds through MSMEs, NEEDS, SHGs, or other financial institutions.

Common Mistakes to Avoid

• Startup India vs Stand up India: Startup India (2016) supports innovation and startups with a fund of funds. Stand up India (2015) provides bank loans to SC/ST and women entrepreneurs. Do not confuse their launch years or target groups.
• SEED vs STEP: SEED is for motivated scientists doing rural projects; STEP is for formal skill training and employment. Different target groups entirely.
• Provisional Registration period: It is ONE year (not six months), renewable for TWO periods of six months. Total possible validity is two years maximum.
• JAM expansion: JAM = Jan Dhan Aadhaar Mobile, not "Jan Dhan Ahaar Mission". "Aadhaar" is the correct spelling.
• M-SIPS subsidy percentage: M-SIPS provides 20-25% capital subsidy, not 100% or 50%. It applies only to specified manufacturing industries.
• NSDM launch: July 2015 — do not confuse with Startup India (2016) or Make in India (September 2014). Each has a distinct year and purpose.
• NEEDS is a State Government scheme, not a Central Government scheme. It stands for New Entrepreneur-cum-Enterprise Development Scheme.
• New Gen IEDC amount: Up to Rs 25 lakhs, not Rs 5 lakhs or Rs 50 lakhs. It is provided to educational institutions, not individual entrepreneurs directly.
• Stand up India loan range: Rs 10 lakh to Rs 1 crore — not Rs 1 lakh or Rs 10 crore. Each bank branch must lend to at least one SC/ST and one woman borrower.
• AIM vs AIC: AIM (Atal Innovation Mission) is the overall initiative; AIC (Atal Incubation Centres) are the incubation facilities under it.

Exam Checklist

• [ ] Can list 5 government schemes with their launch year and purpose
• [ ] Know the full expansions: STEP, JAM, TREAD, M-SIPS, SEED, New Gen IEDC, NSDM, PMKVY, AIC, SPRS
• [ ] Can explain the 6 steps to promote an entrepreneurial venture
• [ ] Know the 8 aspects of project preparation (technical feasibility through finance arrangement)
• [ ] Remember Provisional Registration validity: 1 year + 2 renewals of 6 months each
• [ ] Can distinguish Startup India, Stand up India, and Make in India
• [ ] Know which schemes target women entrepreneurs (TREAD, Stand up India, STEP)
• [ ] Can explain Digital India and JAM for direct subsidy transfer
• [ ] Know M-SIPS subsidy: 20-25% capital subsidy
• [ ] Can write short notes on: New Gen IEDC, PMKVY, AIC, NSDM, STEP, SEED, TREAD, SPRS
• [ ] Remember key launch years: Make in India (Sept 2014), Stand up India (2015), NSDM (July 2015), Startup India (2016), AIC (2016)
• [ ] Know the loan range under Stand up India: Rs 10 lakh to Rs 1 crore