Business Studies Notes for Chapter 13 Entrepreneurship Development Class 12 - FREE PDF Download
FAQs on Entrepreneurship Development Class 12 Business Studies Chapter 13 CBSE Notes - 2025-26
1. What is the core concept of entrepreneurship as covered in the Class 12 Business Studies syllabus?
Entrepreneurship is the process of designing, launching, and running a new business, which typically begins as a small business. It involves the capacity and willingness to develop, organise, and manage a business venture along with any of its risks to make a profit. It is fundamentally about innovation, value creation, and risk-bearing to meet market needs.
2. What are the key characteristics of entrepreneurship to remember for a quick revision?
For a quick revision of Chapter 13, focus on these main characteristics of entrepreneurship:
- Systematic Activity: It is a purposeful and organised activity, not a random one.
- Innovation: This involves introducing new products, services, or methods of production.
- Risk-Bearing: Entrepreneurs operate in an uncertain environment and bear the financial and psychological risks of the venture.
- Organisational Skill: It involves the ability to bring together various factors of production to create a functional enterprise.
- Economic and Dynamic Activity: It is geared towards wealth creation and adapts to changes in the market.
3. How can one differentiate between an 'Entrepreneur' and 'Entrepreneurship' for conceptual clarity?
The key distinction lies in the 'person' versus the 'process'. An entrepreneur is the individual—the innovator, organiser, and risk-taker who envisions and starts an enterprise. In contrast, entrepreneurship is the dynamic process or set of activities that the entrepreneur undertakes to establish and run that enterprise. Essentially, the entrepreneur is the actor, and entrepreneurship is the act.
4. How does the role of an entrepreneur fundamentally differ from that of a manager?
An entrepreneur's primary role is that of an owner and initiator, focused on starting a new venture by bearing all associated risks. A manager, on the other hand, is an employee whose main role is to oversee the day-to-day operations of an already established business. While an entrepreneur is concerned with innovation and startup activities, a manager is concerned with planning, organising, staffing, directing, and controlling to achieve organisational goals.
5. What is the primary purpose of Entrepreneurship Development?
The primary purpose of Entrepreneurship Development is to enhance and refine the skills, knowledge, and mindset of potential and existing entrepreneurs. The ultimate goal is not just to create more businesses, but to foster a culture of sustainable innovation, promote self-employment, generate large-scale job opportunities, and contribute to the balanced economic growth of a country.
6. What are the key stages in the entrepreneurship process to summarise for revision?
The entrepreneurial process can be summarised in a few key stages for effective revision:
- Idea Generation: Identifying a business opportunity or a solution to a problem.
- Opportunity Evaluation: Assessing the viability, market potential, and risks of the idea.
- Planning: Developing a comprehensive business plan outlining goals, strategies, and resources.
- Resource Mobilisation: Arranging for the necessary finance, human resources, and other assets.
- Management and Growth: Launching and managing the venture, and then scaling it for growth.
7. Why is the 'Startup India Scheme' a significant topic in the study of entrepreneurship development?
The 'Startup India Scheme' is significant because it is a prime real-world example of a government-led entrepreneurship development program. It provides a practical context for the chapter's theoretical concepts by showing how a government actively fosters an ecosystem for innovation and new ventures through funding support, tax benefits, and simpler regulations. For students, it connects classroom learning to national economic strategy.
8. Besides financial profit, what other value does entrepreneurship contribute to society?
Beyond profit, entrepreneurship creates significant societal value. Entrepreneurs are key drivers of job creation, reducing unemployment. They introduce innovations that can lead to an improved standard of living and new consumer choices. Furthermore, by setting up enterprises in diverse regions, they can foster balanced regional development and contribute to the overall economic self-reliance of a nation.
