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Chapter Analysis
Intermediate17 pages • EnglishQuick Summary
The chapter on MSME and Business Entrepreneurship discusses the significance of Micro, Small, and Medium Enterprises (MSMEs) in economic development. It highlights their contribution to GDP, employment, and exports, emphasizing their role in supporting large industries and fostering entrepreneurship through indigenous skills and locally available resources. However, the chapter also outlines the challenges faced by MSMEs, such as financial constraints, technological limitations, and global competition, while emphasizing the importance of innovation and entrepreneurship.
Key Topics
- •Role and significance of MSMEs in India
- •Challenges faced by MSMEs
- •Government policies for MSMEs
- •Entrepreneurship development
- •Innovation and technology in MSMEs
- •Financial issues in MSMEs
- •Global competition and MSMEs
- •Intellectual Property Rights (IPR) for entrepreneurs
Learning Objectives
- ✓Explain the meaning and nature of MSME in India
- ✓Appreciate the role of MSME in economic development
- ✓Analyze the problems faced by MSMEs
- ✓Discuss the role of innovation and entrepreneurship for MSMEs
- ✓Understand government initiatives for MSMEs
- ✓Recognize the importance of IPR for new ventures
Questions in Chapter
Which year the MSMED Act passed?
Answer: 2006
Page 213
What is the micro enterprise.
Page 213
What is a cottage industry?
Page 213
What is meant by Village and Khadi Industry?
Page 213
Give any two characteristics of entrepreneurship development.
Page 213
State the role of MSME in development of a country?
Page 214
What are the different parameters used to measure the size of MSME?
Page 214
State any three major problems faced by MSMEs?
Page 214
How do small scale industries contribute to the socio-economic development of India? Discuss.
Page 214
Describe the role of small business in rural India.
Page 214
Discuss the problems faced by small scale industries.
Page 214
What measures has the government taken to solve the problem of finance and marketing in the small scale sector?
Page 214
‘Innovation is integral to MSME’. Discuss giving reasons to your answer.
Page 214
‘Creativity and Innovation is the key to MSME’. Justify the statement.
Page 214
Additional Practice Questions
What are the benefits of MSMEs utilizing locally available resources?
easyAnswer: MSMEs benefit from utilizing locally available resources by reducing costs associated with transportation and procurement. It also helps in promoting local industries and creating employment opportunities within the locality.
How do MSMEs contribute to entrepreneurship development?
mediumAnswer: MSMEs foster entrepreneurship development by providing a platform for individuals to start businesses with limited capital. They play a critical role in promoting innovation, utilizing indigenous skills, and encouraging grassroots entrepreneurship.
Discuss the role of MSMEs in reducing regional imbalances.
mediumAnswer: MSMEs contribute to reducing regional imbalances by spreading industrial activities across rural and urban areas, thus providing growth opportunities and employment in underdeveloped regions and reducing migration to urban centers.
What is the significance of the MSMED Act, 2006 for MSMEs?
hardAnswer: The MSMED Act, 2006 provides a framework for the development and enhancement of the MSME sector by establishing clear criteria for classification, facilitating credit flow, and supporting marketing and technological upgrades.
Explain the challenges faced by MSMEs in adopting modern technology.
hardAnswer: Challenges include lack of access to sufficient capital, limited infrastructure, and inadequate technical skills. MSMEs often struggle with investing in new technologies and face stiff competition from larger enterprises with advanced capabilities.