NCERT Solutions For Class 11 Business Studies Chapter 9 MSME And Business Entrepreneurship

Class 11 Business Studies Chapter 9 MSME And Business Entrepreneurship

NCERT Solutions For Class 11 Business Studies Chapter 9 MSME And Business Entrepreneurship, (Business Studies) exam are Students are taught thru NCERT books in some of state board and CBSE Schools.  As the chapter involves an end, there is an exercise provided to assist students prepare for evaluation.  Students need to clear up those exercises very well because the questions withinside the very last asked from those. 

Sometimes, students get stuck withinside the exercises and are not able to clear up all of the questions.  To assist students solve all of the questions and maintain their studies with out a doubt, we have provided step by step NCERT  Solutions for the students for all classes.  These answers will similarly help students in scoring better marks with the assist of properly illustrated Solutions as a way to similarly assist the students and answering the questions right.

NCERT Solutions For Class 11 Business Studies Chapter 9 MSME And Business Entrepreneurship

Class 11 Business Studies Chapter 9 MSME And Business Entrepreneurship


Short Questions Answers

1. What are the different parameters used to measure the size of the business?

Some of the important parameters that is used to measure the size of business are:

1. Capital invested in the business

2. Number of units produced by business

3. Total number of persons employed by business

4. Value of output of the goods produced

5. Power consumed by the business

2. What is the definition used by Government of India for small scale industries?

As per Government of India, small scale industries are those industries where manufacturing, rendering and production of services are done on small scale. Here the investment is one time and the value is around 1 crore. The investment is done on machinery and plants. However some export oriented units make use of modern machinery for production and the costs can go up to 5 crore for the same.

3. How would you differentiate between an ancillary unit and a tiny unit?

Basis of Comparison

Ancillary industrial units

Tiny units


Units supplying 50% of production to the parent industries are known as ancillary units.

Industries that invest less in their machinery till 25 lakh are known as tiny units.

Investment limit

Investment can go up to 1 crore

Investment can be till 25 lakh


These units supply 50% of their production to the parent company.

There exists no such rules or obligations


Examples of such industries will be those involved in production of tools, machine spare parts, utilities for the primary industries.

Example of such units are shops selling stationery, photocopy centres.

4. State the features of cottage industries.

Cottage industries are characterised by the following features:

1. These industries are owned by individuals who have invested their resources into these units.

2. Such type of industries do not hire many labours, it is mostly operated by family members.

3. Skills required for maintaining a cottage industry is available within particular families.

4. The amount of capital invested is very less.

5. Production techniques are indigenous which requires labour-intensive work.

6. The production is primarily for consumption by self and family, while some portion of it is sold in the market to earn some money.

Long Questions Answers

1. How do small scale industries contribute to the socio-economic development of India?

Small scale industries contribute for socio-economic development in the following ways:

1. Small scale industries constitute the largest share of industries in India. It accounts for around 45% of total exports. Some of the most prominent industries are gems and jewellery, sports goods, handicrafts etc.

2. Small scale industries employs the second most number of people only after agriculture and also generate more opportunities for employment as per capital invested.

3. By manufacturing simple products with minimum capital investment they benefit the people of the region and help eradicate regional imbalances with respect to industrial development.

4. By ensuring rapid decision making it is enabling faster implementation of projects that results in enhanced output.

5. It requires very less capital to start, so it is providing a means to interested citizens to become self-employed

6. Custom made products for the citizens who want customized solutions.

2. Describe the role of small business in rural India.

Small scale businesses help the economy in following ways:

1. Small scale industries especially rural and cottage industries play a major role in providing employment opportunities to the population in rural areas. It is very helpful for people who are economically weak.

2. Small scale industries play a role in distribution of income by providing the opportunity to set up industries all across the country.

3. As small scale businesses are active throughout the year they provide employment opportunities round the year and hence help in combating seasonal unemployment and improve conditions of the rural people.

4. Small scale businesses help drive the growth of economy. It accounts for 45% of overall exports which greatly contributes to economy.

5. It helps in developing the rural areas and stops inflow of rural population into urban areas in search of employment.

3. Discuss the problems faced by small scale industries.

Small scale industries face the following problems:

1. There exists lack of funds for people starting in this sector as investment is mostly self-financed and the other source of funds can be from moneylenders or local financial agencies or agents.

2. Small industries often face shortage of raw materials due to unavailability of finance, also the lack of a proper supply chain and logistics in rural areas results in shortage of raw materials that hinders proper functioning.

3. As the wages are less, they are able to hire semi-skilled labourers which results in lack of talented manpower that impacts their efficiency.

4. The small scale industries are unable to spend more on marketing due to lack of funds

5. The products need to be sold in the market and this is done by help of middlemen, that leads to eating away of profit.

6. There are many small scale industries that make use of outdated and also obsolete. It lowers productivity and renders operations non-feasible.

4. What measures has the government taken to solve the problems of finance and marketing in the small scale sector?

These are some of steps taken by a government for promoting business in small scale:

1. Established National Bank for Agriculture and Rural Development (NABARD) so that rural development can be promoted. This organisation is mainly involved in providing easy and cheap credit facility to small scale industries, cottage industries and rural industries.

2. SIDBI or Small Industries Development Bank of India was setup to help in providing financial assistance to small scale industries.

3. World Association for Small and Medium Enterprises or WASME is an international non-governmental organisation that helps address the problems of medium and small sized enterprises. It has started a committee for Rural Industrialisation for designing a model for the growth and development of rural industries.

4. The government setup NSIC or National Small Industries Corporation in 1955 to promote, foster and aid the growth of small business in the country.

5. NCEUS or The National Commission for Enterprises in the Unorganised Sector was formed in September 2004 with the primary objective of improving the small scale industries and enhance their global competitiveness. It focuses in solving problems faced by small enterprises in the unorganised sector.

5. What are the incentives provided by the government for industries in backward and hilly areas?

The following incentives are offered by the Government in backward and hilly areas:

1. Land: The government has offered lands at reduced rates in order to encourage setting up of small industries.

2. Banking and Finance: The government is offering subsidies in loan amount up to 10-15% for establishing business in backward areas. This is done to encourage business, and capital is very much essential to start business.

3. Raw Materials: Availability of raw materials for setting up industries in hilly or backward areas is very scarce, so the government has made sure to provide the raw materials such as cement, steel and iron to expedite industry set up.

4. Tax exemption: Government has encouraged new business by promising tax exemption for industries in backward areas.

5. Power: Electricity is essential for a business and machinery, so to help more business to start government is providing electricity at 50% discounted rate.


Benefits of NCERT Solutions

NCERT’s Class 11 solution contains extremely important points, and for each chapter, each concept has been simplified to make it easier to remember and increase your chances of achieving excellent exam results. Exam Preparation References Here are some tips on how these solutions can help you prepare for the exam.

  1. This helps students solve many of the problems in each chapter and encourages them to make their concepts more meaningful.
  2. NCERT Solutions for Class 11 solutions encourage you to update your knowledge and refine your concepts so that you can get good results in the exam.
  3. These solutions are the best exam materials, allowing you to learn more about your week and your strengths. To get good results in the exam, it is important to overcome your weaknesses.
  4. Most of the questions in the exam are formulated in a similar way to NCERT textbooks. Therefore, students should review the solutions in each chapter in order to better understand the topic.
  5. It is free of cost.

Tips & Strategies for Class 11 Exam Preparation

  1. Plan your course and syllabus and make time for revision
  2. Please refer to the NCERT solution available on the cbsestudyguru website to clarify your concepts every time you prepare for the exam.
  3. Use the cbsestudyguru learning app to start learning to successfully pass the exam. Provide complete teaching materials, including resolved and unresolved tasks.
  4. It is important to clear all your doubts before the exam with your teachers or Alex (an Al study Bot). 
  5. When you read or study a chapter, write down algorithm formulas, theorems, etc., and review them quickly before the exam.
  6. Practice an ample number of question papers to make your concepts stronger. 
  7. Take rest and a proper meal.  Don’t stress too much. 

Why opt for cbsestudyguru NCERT Solutions for Class 11 ? 

  • cbsestudyguru provide NCERT Solutions for all subjects at your fingertips.
  • These solutions are designed by subject matter experts and provide solutions to every NCERT textbook questions. 
  • cbsestudyguru especially focuses on making learning interactive, effective and for all classes.
  • We provide free NCERT Solutions for class 11 and all other classes.

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