KENDRIYA VIDYALAYA CRPF

LANGJING

SMALL BUSINESS AND ENTERPRISES

Submitted by:
Vanshika Goyal Guided by:
Ramandeep Kaur Sir Rajinder Kumar
 Chapter – 8
Small Business and Enterprises
Who is entrepreneur?
An entrepreneur is someone who has an
idea and who works to create a product
or service that people will buy, as well as
an organization to support that effort.
An entrepreneur takes on most of the
risk and initiative for their new business
and is often seen as a visionary or
innovator.
 ENTREPRENEUR(PERSON)
Entrepreneur is the person(human being) who
takes risks.

Once you have an entrepreneur you will start ENTREPRENEURSHIP(PR

with process of entrepreneurship when you OCESS)
learn skills, businesses idea etc.
ENTERPRISE(OUTCO
Idea is meaningless unless you convert it into ME)
business and enterprise is the outcome when
you start the business.
Why seek an enterprise ?
Entrepreneur seeks an enterprise because it
results in creating goods and services which
bring happiness, joy, comfort and peace. In
order to bring this, the entrepreneur looks
for opportunities for converting challenges
into comfort.

Setting up of an enterprise is setting up a

venture, which brings about change.
Need and Importance of Entrepreneurship
Entrepreneurship is important for national growth and social development.
Developing countries have attained freedom recently. The most common
problem they are facing are :

To conserve the outflow of limited national wealth and fulfilling the

demand for consumer goods services by locally producing them.

The problem of foreign exchange.

These countries need to import capital goods and technology and the
major source of foreign exchange is export.
We can say that the present conditions demand developing countries
to:
Produce import substitute goods to stop outflow of national wealth.

Produce more and more consumer goods and services to meet the
increasing demand these goods locally.

Produce goods for export purpose to earn more and more foreign
exchange.

All the above mentioned requirements can be met by more and more
entrepreneurs. Entrepreneur bear the cost and risk of launching a
new venture, developing new products, adapting new technology
and developing new markets. So, entrepreneurs offer a new strategy
of development.
This shows how entrepreneurship helps in increasing national
production.
Need for entrepreneurship

Life line of a nation: Entrepreneurship is a yardstick to measure the

development of any country as no country can prosper and grow without
development of entrepreneurship.

Provide innovation: Entrepreneur is an innovator who tries new methods of

production, new technology, new ways of marketing etc. He develops new
business ideas and puts them into action to enhance the process of economic
development.

Growth of economy: The Entrepreneurs adapt to changes as changes take

place in the environment. The changes adopted by entrepreneurs in
enterprises even bring changes in the society and economy.
Increased profits: An entrepreneur always tries to minimise cost. He always
tries to get optimum utilisation of resources. The reduction of cost and
increase in efficiency always result in increase in profit.

Employment opportunities: Entrepreneurship not only provides the scope for

self- employment but also offers employment to large number of people as in
the case of successful enterprises. Growth in entrepreneurial activities leads
to more and more employment.

Social benefits: Entrepreneurs always try to adopt latest technology and raise
the standard of living by providing good quality products and services at
lowest cost. By setting up enterprises in backward areas, they try to bring
balanced regional growth. By making optimum utilisation of resources, they
save scarce resources of society
process of entrepreneurship
1. Self-discovery: Under this step, entrepreneur assesses what are his strengths
and weaknesses, what all he enjoys doing and his work experience.

2. Identifying opportunities: Under this step, he tries to find out the need, want
and problems so that he can get an opportunity to overcome the problems and
fulfil the need.

3. Generating and evaluating ideas: Through various measures such as

discussion, brain storming, creativity and his own experiences, he tries to
develop new ideas to overcome problems and meet the expectations of
customers.
4. Planning: Under this step, entrepreneur conducts research, makes business plan
and strategies

5. Raising start-up capital: By using business plan, entrepreneur tries to attract

venture capitalist and partners.

6. Start-up: Under this step, the entrepreneur launches his enterprise and tries to
develop more customers. He also makes changes as per changes in the environment.

7. Growth: Entrepreneur tries to expand and grow the enterprise.

8. Harvest: This means selling the business and harvesting the reward. Many
entrepreneurs sell their existing business and start a new venture.
 Startup India scheme
Startup India is an initiative of Government of India. The campaign was
first announced by Prime Minister, Mr. Narendra Modi in his speech on 15
August, 2015.Startup India is an action plan to develop an eco-system to
promote and nurture entrepreneurship across the country. Government is
offering various bank financing schemes to promote Startups

.What is startup ?
A Startup is a business enterprise in the form of Private.Ltd. company,
partnership, limited liability partnership or sole proprietor, registered in
India, which was started less than five years ago and have annual
turnover of less than 25 crore.
Difference between Startup and Business

Stage of development: Startups are in the early

stages of business, while businesses may be
established and well-established.

Size: Startups are typically smaller than

established businesses.

Innovation: Startups tend to focus on

innovation and developing new products or
services, while established businesses may focus
on maintaining and improving existing offerings.
Risk-taking: Startups often involve a higher level of risk-taking, as the
outcome of their business model and product or service is uncertain.

Growth: Startups are focused on growth and scaling up, while established
businesses may focus on maintaining or expanding their current level of
success.

Resources: Startups have limited resources, while established businesses

may have more resources to work with.

Goals: Startups aim to validate their business model and find a product-
market fit, while established businesses may aim to maintain or grow their
market share and revenue.
In General a startup is a type of business, but not all
businesses are startups. A startup is a company or
organization in the early stages of business, often
characterized by innovation, risk-taking, and a focus on
growth. A business, on the other hand, can refer to any
organization engaged in commercial, industrial, or
professional activities.
Various Schemes and Ways to fund startup by Government of India

Common schemes/benefits offered by government are:

No inspection under this scheme no inspection would be carried out at

startups for three years regarding labor laws etc. as they need only self-
cellfication.

Registration. The Government has launched a mobile app in April 2016

and a portal that will allow startup to get registered in one day. In
addition there will be a single window for clearance, approvals and
registration.

Income Tax Exemption. Income tax exemption is available for first three
years. This exemption is available only after obtaining a certificate from
inter-ministerial board set up for this purpose.
Capital gain tax exemption. The startup can claim capital gain tax
exemption also for first the years.

Benefit in Patent and Intellectual property. In patent cost,

startup can claim an 80% rebated means if a startup applies for
patent the government will give 80% rebate in fees. Even faster
patent registration and protection for intellectual property rights
are also provided under scheme.

Funding Schemes for startup. Government has announced 10,000

crore fund for new star and 500 crore for credit guarantee
scheme. Even foreign aid is also provided to startups example a
Softbank of Japan invested $ 2 billion in Indian startups.
Government initiatives
Following are lists of 10 funding options for startups to help raise capital.

1. Self Funding: To start business self funding is first option on later stage
investors may get attracted.

2. Crowdfunding as a Funding Option: Crowdfunding is one of the newer ways of

funding a startup that has been gaining lot of popularity lately. It's like taking
a loan, pre-order, contribution of investments from more than one person at the
same time.
INTELLECTUAL PROPERTY RIGHTS AND ENTREPRENEURSHIP

Intellectual Property (IP) systems can be critical in helping new ventures

transform their innovation potential and creativity into market value and
competitiveness. Intellectual Property rights (IPR) allow innovative
entrepreneurs to protect their inventions. It also give an edge over your
competitor.

Intellectual Property rights mean providing property rights through

patents, copyrights and trademarks
The Importance of Intellectual Property

Intellectual Property
Is any product of human intellect that is intangible but has
value in the marketplace.
It is called "intellectual" property because it is the product
of human imagination, creativity, and inventiveness.

Importance
Traditionally, businesses have thought of their physical
assets, such as land, buildings, and equipment as the most
important.
Increasingly, however, a company's intellectual assets are
the most important.
What is the IP System?

General definition of intellectual property rights (IPR)

Intellectual Property (IP) is divided into two categories:

1. Industrial property, which includes inventions (patents),

trademarks, industrial designs, and geographic indications;
and

2. Copyright, which includes literary and artistic

works.Intellectual property rights (IPR) refer to the
general term for the assignment of property rights
onthese assets)
The Intellectual Property Right, i.e., IPR is very very important and
beneficial for innovative entrepreneur in the following way:

1.Innovative potential get market value

2. Specially upcoming entrepreneur can make their name and place in

market with IPR.

3. Research shows more than 25% patent are taken by new and upcoming
entrepreneurs.

4. IPR gives the entrepreneur property right on intangible assets.

5. IPR give an edge over your competitor and help you to become leader in
your field.
Intellectual Property include
1.Copy Rights
2. Patent
3. Trade mark

1. Copyright protection gives the copyright holder the exclusive right to copy the
work, modify it (that is, create "derivative works"), and distribute, perform and
display the work publicly.

2. Patents: Patents protect processes, methods and inventions that are "novel,"
"non-obvious“ and "useful." If granted, a patent gives you monopoly on selling,
using, making or importing an invention. The requirements for a patent are
complex.

3. Trademarks: A trademark is like a brand name. It is any word(s) or symbol(s) that

represent a product to identify and distinguish it from other products in the
marketplace.
Small business
Small business is defined as a privately owned
corporation, partnership, or sole proprietorship that
has fewer employees and less annual revenue than a
corporation or regular-sized business.

MEANING OF SMALL BUSINESS

Definition : Immediately after independence small-

scale industry was defined by Industries
Development and Regulation Act, 1951 as "Any
enterprise which employs not more than 50 persons
when using power and 100 when not using power and
with capital assets not exceeding 5 lakh".
 ROLE OF SMALL BUSINESS IN RURAL INDIA

Small-scale industries provide the following benefits in rural

area:

Employment. Small-scale industries are labor-intensive so

they provide additional employment to men and women.
Next to agriculture, small business constitutes the most
popular occupation of people of India. They also provide
employment to agriculturists who remain idle during a part
of year.

Improves Economic Condition. By providing employment

opportunities, the small-scale industries provide more
income to people living in rural areas, which improves
economic conditions in villages.
Promotion of Artistic and Creative Sense. Small business set up in rural area
provides scope for the promotion of artistic achievement and creativity that
has been suppressed in rural areas.

Rural Development. Small-scale industry set up in rural areas leads to their

development which may result in rural reconstruction, sustained growth and
removal of regional disparity.

Mobilization of Local Resources. Small-scale industries facilitate mobilization

and utilization of local resources which might otherwise remain unutilized.
This helps in tapping resources like entrepreneur skill and small savings
specially in rural areas.
Some of the support measures and programs meant for the promotion of
small and rural industries we grouped in following two categories:
Institutional Support
Incentives offered by the Government to SSI

Institutional Support
1. National Small Industries Corporation (NSIC). This was set up in 1955
with a view to promoting and fostering the growth of SSI in the country.
Its main focus was on :
To supply indigenous and imported machines in easy installments
To procure and supply imported raw materials
To export products of SSI
To provide advisory and mentoring services
To provide technological assistance
2. The District Industries Centers (DICs). The DIC program
was started on May 1, 1978 to provide assistance to small-
scale industries at the district level.

These centers provide all the promotional activities such as

identification of suitable scheme, preparation of feasibility
report, arranging for credit etc.

These centers promote entrepreneur attitude in rural areas.

DIC is the institution at the district level which provides all
services and support to entrepreneur for setting up small-
scale business, such as identification of suitable scheme,
preparation of feasibility report, arranging for credit etc.
 Incentives Offered by Government for Industries in
Rural Area

After Independence, some areas in our country are

developing rapidly whereas some areas remain
backward and underdeveloped. But balanced regional
growth and development is a must due to the following
reasons:

To provide employment opportunities in all the

areas
To develop local skills and resources
To restrict the migration of people to urban areas.
To have balanced regional growth and for the development of rural backward and
hilly areas the government has provided the following incentives:

Availability of land in these areas at concessional rates.

Location of public sector projects in backward areas.

Establishment of industrial estates in backward areas.

Development of infrastructure facilities such as transport, banking, power

supply etc..

Offering tax concessions to units located in backward areas.

Finance at concessional rates to industries set up in these areas.

 Granting subsidies from time to time. Some of the subsidies
offered are:

(a)Transport subsidy for carrying raw materials and finished

products in these areas.
(b) Capital subsidy for investment in fixed assets of
industries set up in backward areas.
(c) Infrastructure subsidy. The central government bears
apart of the expenses incurred on infrastructure.

Special programs for the development of backward areas

have been initiated by the government.
Case study

1.) Bhuvan wants to start small scale industry manufacturing Khadi items. His
friend who is making craft items, suggests him to start an industry as
government is offering various benefits to small scale industries.
(a) State the institution set up by government of India to help small scale
industries.
(b) State any five incentives offered by government for SSI.
Ans. (a) (i) DIC
(ii) NSIC
(b) (i) Land at consessional rate
(ii) Location of public sector in backward area
(iii) Providing subsidies such as transport subsidy, capital subsidy and
infrastructure subsidy
(iv) Development of Infrastructure
(v) Tax concession
(vi) Providing finance at concessional rate
2.) Identify the small scale industry according to their capital
(a)The total contribution of raw material and machinery is Rs. 9
lakh
(b) The total contribution of raw material and machinery is Rs. 2
crores
(c) The total contribution of raw material and machinery is Rs.
26,50,000

Answer: (a) The small scale industry that contributes Rs. 9 lakh
for raw material and machinery is Micro-Enterprise
(b) The small scale industry that contributes Rs. 7.5 crore for raw
material and machinery is Medium Enterprise
(c) The small scale industry that contributes Rs. 26,50,000 for
raw material and machinery is small-Enterprise
3.) Preet food Industries set up a food and beverages
processing plant in the rural area of Haryana and opted for labor
intensive techniques due to easy availability of labor and to
provide employment to local people. Board of directors decided
to invest 50 lakhs to acquire plant and machinery, Rs. 1 crore to
buy land, Rs. 20 Lakhs to buy raw material and Rs. 20 lakhs to
maintain day to day expenses.
a. Name the Act of Industries which is applicable to the above
industry.

Ans: The Micro, Small and Medium Enterprises Development

(MSMED) Act of 2006 tackles concerns such as definition,
credit, marketing, and technological advancement. Medium-
sized businesses and service-related businesses are also
covered by these laws. The MSMED Act, 2006 came into
force wef., October, 2006
(b) Which category of part (a) will the above industry come from?
Ans: Micro.
(c) State the investment limit in this category.
Ans: Micro-enterprises are ones with a capital investment of less than
Rs. 1 crore, and turnover less than Rs. 5 crore
(d) What values has been followed by the above company.
Ans: Values followed by the company are as follows:
Employment generation : The company contributed to the
generation of employment opportunities for local people by opting
for labor intensive techniques
Balanced Regional Development : The setting up of food and
beverages processing plants by the company in the rural area of
Haryana contributed to the balanced regional development.
Concern for society : The generation of employment, and the
development of rural areas highlights the company’s concern for the
society.
4.) Board of Directors of "Bio Pure water Ltd." decides to set up
its first unit in the hilly area of Himachal Pradesh Company
requires Rs. 3 crores for it and Rs. 50 Lakhs for working capital.
The company has earned marked 15% of its profit for the
Educational and Health needs of its employees and their family
members.
(a) The above company comes under which category as per
MSMED Act 2006 .
Ans: Micro. Micro-enterprises are ones with a capital investment of
less than Rs. 1 crore, and turnover less than Rs. 5 crore
(b) Write any one commercial reason for setting up a unit in the
hilly region.
Ans: Cheap price of land and labor
(c) According to you, what are the options available to the company for meeting
its long term and short term needs.
Ans: Bank loans and equity finance.
(d) what are the values promoted by the company.
Ans: The following are the company's values:
Balance Regional Development: The company established its first operation in
Himachal Pradesh's hilly region, contributing to the region's development.
Employee motivation: Employees are motivated by the company's
commitment to support their educational and health needs, as well as the
needs of their families.
Job creation: Due to the low cost of land and labor in Himachal Pradesh's hilly
region, the corporation opened its first plant there, resulting in an increase in
job opportunities.
Upliftment of rural area: The company has set aside 15% of its profits for the
educational and health requirements of its employees and their families in the
hilly region, thereby raising the quality of living and developing the rural area.
5.) Government of developed countries encourage many people
to start small scale industries in rural and under developed areas,
so that these areas can be developed and people of these areas
can get employment and their economic conditions can improve.
a. State the benefit of SSI refer in above case.
(b) State any five benefits of SSI.
Ans. (a) Balanced regional growth.
(b) (i) Personal Character. A small-scale unit is generally owned
by a single entrepreneur or partnership, so personal character
is the main feature of this enterprise.
(ii) Independent Management. Small-scale enterprises are
generally managed by the owners only so there is the
advantage of direct motivation, personal care, secrecy,
flexibility etc.
(iii) Dominance of Labor. Small-scale enterprises generally use labor -
intensive techniques. These units do not prefer mechanized methods of
production.

(iv) Limited Investment. A small-scale enterprise requires less capital

investment because it does not employ highly mechanized means of
production.

(v) Limited Area of Operation. A small-scale enterprise generally

operates in a compact area however products are exported all over the
world.

(vi) Located in Rural and Semi-urban Areas. Most of the small-scale

enterprises are located in rural or semi-urban areas due to easy
availability of labour.
Question6). Siraj is a handicraft artist. He has been doing the
work for different firms for more than 10 years. Now, he has
decided to set up his own enterprise in his small town. He has
employed three local people and invested ₹5 lakh. He has
received lot of assistance with government policies. The raw
materials are sourced from the nearby villages. The firm is
known to produce products as per the individual customer
tastes and preferences. The goods are sold at a cheap price
because cost of production is low. However, as the business is
growing, Siraj is finding it difficult to manage all the work since
he has never managed business to such an extent.
In the recent times, company has also faced the problem of arranging
finance for funding increasing purchase orders of big tickets. But to his
rescue, he got finance from an institution that provides finance to rural
and small industries and organizes training and development programs
for rural entrepreneurs. However, he has now got a new problem at hand.
One of the big textiles players has entered this handicraft space and has
started poaching Siraj's employees at higher salaries. Siraj is now seeking
a solution to this.

Question. Which role of small scale industries in India is highlighted in the

passage?
a. Balanced regional growth
b. (b) Low cost of production
c. (c) Customized production
d. (d) All of the above
Answer: D
Question. In which category, Siraj's firm falls into?
(a) Micro enterprises
(b) Small enterprises
(c) Medium enterprises
(d) None of these
Answer: A

Question. "He got finance from an institution that

provides finance to rural and small industries and
organizes training and development programs for rural
entrepreneurs." Which institution is highlighted in this
line?
a. NSIC
(b) RSBDC
(c) NABARD
(d) Ministry of MSMEs
Answer: C
Question. One of the big textiles players has
entered this handicraft space and has started
poaching Siraj's employees at higher salaries. Which
problem of small business is highlighted in this line?
a. Managerial skills
(b) Labor
(c) Finance
(d) Quality
Answer: B
Question. "He has received lot of assistance with
government policies." Which ministry is the nodal ministry
for formulation of policy and coordination of central
assistance for the promotion and development of small
scale industries in India?
a. Ministry of micro enterprises
(b) Ministry of small enterprises
(c) Ministry of medium enterprises
(d) None of the above

Answer: D
Question. Which problem of small scale industries is
highlighted in the line, "Siraj is finding it difficult to manage
all the work since he has never managed business to such an
extent"?
a. Quality
(b) Capacity utilization
(c) Managerial skills
(d) Finance

Answer: C
Question. 7.) Manish, Rahul and Madhav live in the same locality. They used to meet
and discuss their ideas. After discussing the recent fire breakout in their area, they
decided to take fire insurance for their house or work area. Manish gets his house
insured against fire for ₹1 lakh and during the policy period, his house gets damaged
due to fire and the actual loss amounts to ₹2.5 lakh. The insurance company acquired
the burning material and approved his claim. Rahul gets his godown insured against
fire for ₹1 lakh but does not take enough precautions to minimize the chances of fire
like installing fire extinguishers in the factory. During the policy, a fire takes place in
his godown and he does not take any preventive steps like throwing water and calling
the employees from the fire fighting department to control the fire. He suffered a loss
of ₹1,20,000. Madhav took a fire insurance policy of ₹20 lakh for his factory at an
annual payment of ₹24,000. In order to reduce the annual premium, he did not
disclose that highly explosive chemicals are being manufactured in his factory. Due to a
fire, his factory gets severely damaged. The insurance company refused to make
payment for the claim as it became aware of the highly explosive chemicals.
1.) How much can Manish claim from the insurance company?
a.) 2.5 Lakhs
b.) 1 Lakh
c.) 2 Lakhs
d.) None of the above

2.) How much compensation can Rahul get from the insurance
company?
a.) ₹2,00,000
b.) ₹1,20,000
c.) ₹1,00,000
d.) Nil

3.) Which principle is violated in the case of Rahul?

a.) Mitigation
b.) Insurable Interest
c.) Utmost Good Faith
d.) Indemnity
4.) How much amount is the insurance company liable to pay to Madhav if he files a case
against it?
a.) 24,000
b.) Nil
c.) Insufficient information
d.) 20 lakh

5.) Which principle of Insurance is violated by Madhav?

a.) Utmost Good Faith
b.) Insurable interest
c.) Subrogation
d.) Proximate Cause

6.) The insurance company acquired the burnt material and approved his claim. Which
principle of Insurance is highlighted in the given statement.
Mitigation
Indemnity
Proximate Cause
Subrogation
Solution
1 Lakh
2 (d) Nil
3 (a) Mitigation
4 (b) Nil
5 (a) Utmost Good Faith
6 (d) Subrogation
M.C.Q’s-

1.) The small scale industry can enjoy the status of ____ if it supplies not less than 50% of
its production to another industry, referred to as the parent unit.
a. Village industries
(b) Micro Business industry
(c) Export oriented unit
(d) Ancillary small industry
Answer: (d) Ancillary small industry

2.) A tiny unit is defined as an industrial or business enterprise whose investment in

plant and machinery is not more than _____.
b. Rs.25 Lakhs
(b) Rs.30 Lakhs
(c) Rs.35 Lakhs
(d) Rs.50 Lakhs
Answer: (a) Rs.25 Lakhs
3.) Which of the following comes under the Modern Small Industries?
a. Coir
(b) Handicrafts
(c) Khadi
(d) Power looms
Answer: (d) Power looms

4.) ___ is defined as one in which the investment in fixed assets of plant and machinery does not
exceed rupees one crore.
b. Limited Companies
(b) Large Scale industry
(c) Small Scale Industry
(d) None of the above
Answer: Answer: (c) Small Scale Industry

5.) Expand EOUs :-

c. Essential Operating units (b) Export Order Units
(c) Export Oriented units (d) Essential Order units
Answer: (c) Export Oriented units
6.) 6. Any industry located in a rural area that produces any goods, renders any service with or
without the use of power is known as ____.
a. City Industry
(b) Town Industry
(c) Village Industry
(d) District Industry
Answer: (c) Village Industry

7. Which of the following is organized by individuals?

(a) Cottage industry
(b) Railway industry
(c) Chemical industry
(d) None of the above
Answer: (a) Cottage Industry

8.) 8. The small-scale industry can enjoy the status of ___ unit if it exports more than 50%
of its production.
b. Domestic unit (b) Export oriented units
(c) Small scale unit (d) Import oriented units
Answer: (b) Export oriented units
9. In India, the Village and Small Industries Sector consists of both traditional and modern
small industries. This sector has _____subgroups.
a. Eleven
(b) Five
(c) Ten
(d) Eight
Answer: (d) Eight

10. Small scale industries owned and managed by women entrepreneurs have a share capital
of not less than ____.
b. 25 percent
(b) 50 percent
(c) 51 percent
(d) 20 percent
Answer: (c) 51 percent.

11. ____ is/are also known as Rural industries or Traditional industries.

c. Food industry (b) Cottage industry
(c) Agricultural industry (d) None of the above
Answer: (b) Cottage industry
12. Micro enterprises are those whose investment in plant and machinery does not exceed
rupees __.
a. Rs.5 Lakhs
(b) Rs.3 Lakhs
(c) Rs.1 Lakh
(d) Rs.2 Lakhs
Answer: (c) Rs.1 Lakh

13. Limit of investment in a small scale industry is ___.

b. One crore
(b) Two crores
(c) Five crores
(d) Ten crores
Answer: (a) One crore

14.) Which of the following is part of the Village and Small Industries Sector?
c. Handicrafts (b) Sericulture
(c) Handlooms (d) All of the above
Answer: (d) All of the above
15.) A small-scale service and business enterprise are ones whose investment in
fixed assets of plant and machinery excluding land and building does not exceed __.
a. Rs.25 Lakhs
(b) Rs.30 Lakhs
(c) Rs.10 Lakhs
(d) Rs.15 Lakhs
Answer: (c) Rs.10 Lakhs

16.) Full form of MSME :

b. Micro, Small and Medium Enterprises
(b) Micro, Small and Manageable Enterprises
(c) Micro, Strong and Medium Enterprises
(d) Micro, Small and Medium Exchange
Answer: (a) Micro, Small and Medium Enterprises

17.) MSMEs contribute to____percent of GDP :-

c. 25 (b) 50 (c) 29.7 (d) 75
Answer: (c) 29.7
18.) The MSME sector in India consists of how many subgroups:
a. 19
(b) 10
(c) 8
(d) 5
Answer: (c) 8

19.) Which of the following can be used to measure the size of business units:
(a) Number of persons employed in business
(b) Capital invested in the business
(c) Turnover of business
(d) All of the above
Answer: (d) All of the above

20.) If the investment in an MSME is Rs 1 crore and turnover is less than 5 crores then
it is a:
b. Microenterprise
(b) Small enterprise
(c) Medium enterprise
(d) Large enterprise
Answer: (a) Micro enterprise