Entrepreneurship and Employability Skills
Entrepreneurship and Employability Skills
This domain tests whether you can turn a tailoring or home-furnishing skill into a viable micro-enterprise and work effectively as an employee. Expect costing, pricing, break-even, registration and communication questions.
Core concepts
- Business idea and market survey: identify customers, competitors, price range and demand before buying machines.
- Costing: direct material + direct labour + overheads = total cost. Price must recover cost and provide margin; do not price by guesswork.
- Break-even: fixed costs ÷ contribution per unit, where contribution = selling price − variable cost per unit.
- Registration and finance: MSME/Udyam registration, GST where applicable, and schemes such as PMEGP or Mudra for small units. Keep invoices, receipts and stock records.
- Employability: clear communication, teamwork, punctuality, resume writing and interview preparation; know your skill evidence and safety habits.
Worked example
A cushion cover costs ₹250 in material and ₹80 in labour; overhead is ₹40, so total cost = ₹370. For a 20% margin on selling price, price = 370 ÷ (1 − 0.20) = ₹462.50. If fixed costs are ₹20,000 and contribution per cover is ₹92.50, break-even = 20,000 ÷ 92.50 = 217 covers. Below that volume the unit makes a loss.
Marks-losing traps
Adding a margin to cost instead of calculating margin on selling price; ignoring working capital and machine maintenance; forgetting GST or registration; writing a resume with no measurable skill evidence.
Key points
- Survey demand before investing.
- Total cost = material + labour + overhead.
- Break-even = fixed cost ÷ contribution per unit.
- Keep records for GST, MSME and loan applications.
- Employability needs communication, teamwork and evidence of skill.