Self-Employment and Entrepreneurship Development
Entrepreneurship as self-employment
The exam tests the meaning and traits of an entrepreneur, the difference between wage employment and self-employment, entrepreneurship development programmes and support for women, rural and first-generation entrepreneurs. An entrepreneur spots an opportunity, mobilises resources, bears risk and innovates. Self-employment means earning through one's own enterprise rather than a salary. Enterprise development programmes provide training in opportunity identification, business plans, finance and marketing. Start-up support includes incubation, mentoring and seed funding. A business plan should state the value proposition, target market, operations, costs, projected sales and break-even.
Worked example
A candidate can earn a salary of ₹18,000 per month. She starts a unit with monthly revenue ₹90,000, variable cost ₹55,000 and fixed cost ₹20,000. Accounting profit = ₹90,000 − ₹55,000 − ₹20,000 = ₹15,000. Against her salary, economic profit = ₹15,000 − ₹18,000 = −₹3,000. The venture must raise sales or cut costs before it beats the salary option; accounting profit alone is not enough.
Traps that cost marks
Do not equate entrepreneurship with gambling; risk is assessed and managed. Do not say self-employment applies only to agriculture or tiny trade. Do not ignore opportunity cost when judging viability. Do not list traits such as 'hard work' without linking them to enterprise functions.