12th Standard Commerce — Government Schemes for Entrepreneurial Development Online Test
Chapter 25 of 12th Commerce describes Government of India schemes for innovation and entrepreneurship such as Startup India, Make in India, AIM, STEP, JAM, Digital India, Stand-Up India, TREAD and PMKVY, other schemes like M-SIPS and SPRS, the steps in promoting a venture, and single window clearance.
Study this chapter
About Government Schemes for Entrepreneurial Development
Medium ~45 min study
Government Schemes for Entrepreneurial Development is the last chapter of Unit 9, Entrepreneurship Development, in the Tamil Nadu State Board Class 12 Commerce book. It starts from the fact that job creation is a foremost challenge for India, and that the Government offers financial assistance, insurance, subsidy, training and business loans to help new enterprises.
The chapter then walks through the main national schemes, the steps an entrepreneur takes to start a venture, and how the District Industries Centre gives all clearances under one roof.
What you'll learn
- Name the main Government of India schemes for innovation and entrepreneurship.
- State the launch dates and key features of Startup India, Make in India and the National Skill Development Mission.
- Describe schemes that support women entrepreneurs.
- Explain M-SIPS, New Gen IEDC, SPRS and Atal Incubation Centres.
- List the steps in promoting an entrepreneurial venture.
- Describe the contents of a project report and the single window clearance system.
Before you start
- Meaning and functions of an entrepreneur from Chapter 23.
- Types of entrepreneurs from Chapter 24.
- A basic idea of sources of finance and forms of business organisation.
Topics covered in this chapter
Government Schemes for Entrepreneurial Development explained
What this lesson covers
India's efforts at promoting entrepreneurship
Startup India (January 2016, Fund of Funds), Make in India (September 2014, global design and manufacturing hub), Atal Innovation Mission, STEP for women, Jan Dhan-Aadhaar-Mobile for direct subsidy transfer, Digital India, Stand-Up India (loans of Rs.10 lakh to Rs.1 crore), TREAD (credit to women through NGOs), PMKVY, the National Skill Development Mission (July 2015) and SEED.
Other specific schemes
- M-SIPS: capital subsidy of 20% in SEZ and 25% in non-SEZ.
- New Gen IEDC: one-time assistance up to Rs.25 lakh.
- Dairy Entrepreneurship Development Scheme.
- SPRS: exemption from Earnest Money Deposit, free tenders.
- Atal Incubation Centres under AIM at NITI Aayog (2016).
Steps in promoting a venture
Selection of product, form of ownership, site, capital structure, manufacturing know-how and the project report, followed by registration certificates, statutory licence, power connection and arrangement of finance.
Tamil Nadu and single window clearance
The District Industries Centre receives a common application form and arranges every clearance under one roof.
Common mistakes to avoid
- Mixing up the launch dates: Make in India September 2014, National Skill Development Mission July 2015, Startup India January 2016.
- Swapping the M-SIPS rates. The subsidy is 20% in SEZ and 25% in non-SEZ.
- Confusing Startup India with Stand-Up India. Stand-Up India gives loans of Rs.10 lakh to Rs.1 crore for greenfield enterprises.
- Thinking TREAD lends to women directly. Credit reaches them through NGOs.
- Placing wages and overheads under managerial competency. They are recurring expenses under financial viability.
Test yourself on these with the practice test, then check the worked reasoning in the solved MCQs.
Frequently asked questions
What is Startup India?
Startup India is a Government of India initiative launched in January 2016 that promotes entrepreneurship by mentoring, nurturing and facilitating startups throughout their life cycle. A Fund of Funds has been created under it to help startups gain access to funding.
What is the aim of Make in India?
Make in India, launched in September 2014, is designed to transform India into a global design and manufacturing hub. It invites investors and partners around the world and has helped procure investments, foster innovation, develop skills and protect intellectual property.
What is JAM?
Jan Dhan-Aadhaar-Mobile (JAM) is a technological intervention that enables direct transfer of subsidies to the intended beneficiaries, so that intermediaries and leakages in the system are eliminated.
How does TREAD help women?
Trade related Entrepreneurship Assistance and Development (TREAD) enables credit for interested women through registered non-governmental organizations, which also provide counselling and training so that women can take up non-farm activities.
What does the Single Point Registration Scheme offer?
SPRS is a scheme for Micro and Small Enterprises. It exempts them from paying Earnest Money Deposit (EMD), and tenders are issued to them free of cost.
What does a project report contain?
A project report covers technical feasibility, economic viability, financial viability and managerial competency. It deals with sources of finance, technical know-how, labour and raw materials, market potential and profitability, in the format prescribed by term lending institutions.
What are the two types of finance an entrepreneur needs?
An entrepreneur needs long-term finance for acquiring fixed assets and short-term finance for working capital. The entrepreneur also has to bring in the promoters' contribution, or seed capital, prescribed by financing agencies.
Last updated 16 October 2026