KSLU Solved Question Papers
Entrepreneurship Development
Previous Year Question Paper with Solution
B.B.A. LL.B. (Five Years) · Sem 2
2015 Dec (70 marks) Examination
munotes.in
Mumbai
B.B.A. LL.B. (Five Years) Sem 2 Entrepreneurship Development 2015 Dec (70 marks) Question Paper with Solutions
First published on munotes.in on 21 October 2026.
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The question paper reproduced here is the paper as set by Karnataka State Law University at the 2015 Dec (70 marks) examination.
Contents
The questions below are the paper as Karnataka State Law University set it at the 2015 Dec (70 marks) examination, in the order it was set.
MarksPage
The Paper as Set
The questions in this volume are the questions asked at the 2015 Dec (70 marks) examination, reproduced as Karnataka State Law University set them, in the order it set them. Long reading passages are shortened to their first and last lines and our summary; the original paper prints them in full. Only the answers are ours. See the original question paper.
Duration 2½ hours · Total marks 70 · 12 questions answered
How to use this volume
Solve the paper first, under exam conditions and against the clock. Then read the answers here and mark your own. Reading a solution before attempting the question feels productive and teaches very little, because recognising an answer is not the same as being able to write one.
Q1Explain the problems of Rural Entrepreneurship.[10]
Answer
For full marks, cover: the meaning of rural entrepreneurship and its main kinds (agro-based, forest-based, artisan and craft, mineral-based, service); why it matters; its problems grouped as finance, marketing, raw materials, infrastructure, technology and skills, management, human resources, social and cultural, information and procedures, and risk; the measures that address them (with named schemes and years); a table; and a conclusion.
Meaning
Rural entrepreneurship means the starting and running of enterprises in villages and small rural towns, usually by local people, using local resources and labour. Its main kinds are:
- Agro-based: rice and flour mills, oil extraction, dairy, food processing, pickles and spices.
- Forest-based: bamboo and cane products, honey, herbal products.
- Artisan and craft: handloom, pottery, carpentry, metal work, leather goods.
- Mineral-based: bricks, stone cutting, lime.
- Service: repair shops, transport, tailoring, beauty services, digital service centres.
It matters because it provides non-farm work close to home, adds value to farm produce, keeps traditional skills alive and slows migration to cities. Yet rural entrepreneurs face problems more severe than those in towns.
Problems of rural entrepreneurship
1. Finance
- Lack of collateral. Rural people often hold land with unclear titles or none at all, so banks hesitate to lend.
- Dependence on moneylenders. Where bank credit is hard to obtain, entrepreneurs borrow at high informal rates.
- Shortage of working capital. Buyers pay late, while suppliers want cash, so money is always short.
2. Marketing
- Small local markets with low purchasing power.
- Middlemen who buy cheaply and take most of the margin.
- Poor transport and storage, which make distant markets costly to reach.
- Competition from branded factory goods, which look more attractive and are widely advertised.
- Weak packaging, branding and quality standards.
3. Raw materials
Agricultural and forest raw materials are seasonal, vary in quality and are often bought in small lots at high prices. Some, such as cane or clay, face restrictions on collection.
4. Infrastructure
Unreliable power, poor roads, limited water, few industrial sheds and weak internet raise costs and limit the kind of enterprise possible.
5. Technology and skills
Many rural units use old tools and methods, so productivity and quality are low. Training centres and technical advice are often far away.
6. Management
Owners may lack knowledge of costing, pricing, book-keeping and planning. Many do not separate household and business money, which hides losses until too late.
7. Human resources
Educated and skilled young people tend to migrate to cities. Units are left with unskilled labour, while family members work unpaid.
8. Social and cultural barriers
Fear of risk, preference for farming or government jobs, family pressure, and social restrictions on women's mobility and property discourage enterprise.
9. Information and procedures
Rural entrepreneurs often do not know about schemes, registrations and licences. Forms, visits to district offices and delays in approvals deter them.
10. Risk and dependence on agriculture
When the monsoon fails or crop prices fall, rural incomes drop. Demand for the products and services of rural units falls with them.
Measures that address the problems
- Collateral-free credit. The Pradhan Mantri MUDRA Yojana (2015) gives collateral-free loans to non-farm micro units, and CGTMSE guarantees collateral-free loans to micro and small enterprises.
- Higher subsidy for rural units. The Prime Minister's Employment Generation Programme (PMEGP) favours rural units. For the general category its margin money subsidy is 25 per cent of project cost in rural areas, against 15 per cent in urban areas. KVIC is the national nodal agency.
- Rural incubation. The ASPIRE scheme funds livelihood business incubators in agro-rural sectors.
- Support for artisans. PM Vishwakarma (17 September 2023) supports traditional artisans and craftspeople.
- Training. Entrepreneurship development programmes and the Entrepreneurship and Skill Development Programme of the Ministry of MSME build management and technical skills.
- Simple registration. Free online Udyam Registration (2020) and the Udyam Assist Platform (2023) bring informal rural units into the formal system. District Industries Centres help those who need assistance.
- Collective action. Cooperatives, producer groups and clusters let small rural producers buy inputs, process and market together.
Problems at a glance
| Area | Problem | Remedy |
|---|---|---|
| Finance | No collateral, moneylenders, short working capital | MUDRA, CGTMSE, PMEGP |
| Marketing | Small markets, middlemen, weak branding | Cooperatives, clusters, online selling |
| Raw materials | Seasonal, costly, uneven | Group purchase, storage |
| Infrastructure | Power, roads, sheds, internet | Public investment |
| Technology and skills | Old methods | Training, technology centres |
| Management | Poor accounts and planning | EDPs, mentoring |
| People | Migration of the skilled | Local training and jobs |
| Society | Fear of risk, limits on women | Role models, targeted support |
| Information | Unaware of schemes | DICs, awareness programmes |
| Risk | Dependence on farm incomes | Diversified products and markets |
Conclusion. Rural entrepreneurship can turn local resources and skills into incomes and jobs where they are most needed. It is held back by problems of finance, marketing, raw materials, infrastructure, technology, management, human resources, social attitudes, information and risk. Collateral-free credit, higher PMEGP support for rural units, incubation, artisan schemes, training and collective action address many of them. Better rural infrastructure and markets remain essential.
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