Entrepreneurship and Employability Skills
This section covers Entrepreneurship and Employability Skills. The exam checks whether you can identify a business opportunity, estimate costs and price, prepare a simple plan, and present yourself professionally in a resume and interview.
Core rules and concepts
- An entrepreneur identifies a need, takes risk, and organises resources. A business plan covers the idea, customer, market, operations, costs, pricing, and expected profit.
- Fixed costs do not change with output, such as rent. Variable costs change with output, such as paper per print. Revenue is income; profit is revenue minus total cost.
- Break-even is the output at which revenue equals total cost. Contribution per unit = price − variable cost per unit. Break-even units = fixed cost ÷ contribution per unit.
- Employability skills include teamwork, time management, problem solving, digital footprint, resume accuracy, and interview preparation. Never exaggerate qualifications.
Worked example
A small print shop has fixed costs of Rs 20,000 per month, a variable cost of Rs 10 per print, and a price of Rs 20 per print. Find break-even.
Reasoning: Contribution per print = Rs 20 − Rs 10 = Rs 10. Break-even = Rs 20,000 ÷ Rs 10 = 2,000 prints per month. Below 2,000 prints, the shop makes a loss; above it, a profit before other costs.
Traps that cost marks
Do not confuse revenue with profit. Do not ignore fixed costs. Do not price below variable cost without a clear reason. Do not put false claims in a resume. Do not assume a good idea automatically has customers.