NCERT Class 11 Business Studies Business Studies: Chapter 9 — MSME and Business Entrepreneurship
This chapter, "MSME and Business Entrepreneurship," focuses on Micro, Small, and Medium Enterprises (MSMEs) in India. It highlights their substantial contribution to economic growth, accounting for nearly 30% of GDP and almost 50% of exports. MSMEs are crucial for employment, providing jobs to about 60 million people across 28.5 million enterprises, second only to agriculture. The chapter emphasizes their role in complementing large industries, fostering indigenous skills, promoting grassroots innovation, and developing entrepreneurship. It also introduces the concept of MSMEs as a vital link in industrialization, utilizing local resources and skills to drive economic prosperity and widen the entrepreneurial base. The learning objectives include understanding the meaning, nature, role, and challenges faced by MSMEs, as well as the importance of innovation and entrepreneurship within this sector for CBSE students.
Quick info
| Board | CBSE / NCERT |
|---|---|
| Class | Class 11 |
| Subject | Business Studies |
| Book | Business Studies |
| Chapter | Chapter 9 — MSME and Business Entrepreneurship |
| Language | English |
| PDF type | NCERT Textbook |
| Session | CBSE 2026 |
| Reading time | 3 minutes |
| Word count | 553 |
Learning outcomes
- Explain the meaning and nature of MSME in India.
- Appreciate the role of MSME in India's economic development.
- Analyze the common problems faced by MSMEs.
- Discuss the importance of innovation and entrepreneurship for MSMEs.
Vocabulary
| Word | Meaning |
|---|---|
| MSME | Micro, Small and Medium Enterprises |
| Entrepreneurship | The activity of setting up a business or businesses, taking on financial risks in the hope of profit. |
| GDP | Gross Domestic Product |
| Ancillary units | Units that supply parts or services to larger industries. |
| Value chain | The full range of activities needed to produce and distribute a product or service. |
| Indigenous skills | Skills native to a particular place or country. |
| Grassroot innovations | Innovations originating from ordinary people or local communities. |
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Practice questions
- What does MSME stand for? Answer: MSME stands for Micro, Small and Medium Enterprises.
- What percentage of exports do MSMEs contribute? Answer: MSMEs contribute approximately 49.66 per cent of exports.
- How many people are employed by MSMEs in India? Answer: MSMEs offer employment to nearly 60 million people.
- What is the role of MSMEs in relation to large industries? Answer: MSMEs act as complementary ancillary units to large industries and form an integral part of the value chain.
Frequently asked questions
What is the significance of MSMEs in India?
MSMEs play a significant role in India's economic growth, contributing substantially to GDP and exports, and providing large-scale employment.
How much do MSMEs contribute to India's GDP?
MSMEs contribute approximately 29.7 per cent of India's GDP.
What is the role of MSMEs in exports?
MSMEs are crucial for exports, accounting for about 49.66 per cent of the total exports from India.
What kind of enterprises are included under MSME?
MSME includes Micro, Small, and Medium Enterprises, which are vital for industrialization and entrepreneurship.
How do MSMEs support indigenous skills and innovation?
MSMEs utilize local raw materials and indigenous skills, fostering grassroots innovations and entrepreneurship development.
What are the learning objectives of this chapter?
The chapter aims to explain the meaning, nature, role, and problems of MSMEs, and discuss the role of innovation and entrepreneurship for them.
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Topics covered
NCERT Class 11 Business Studies — Business Studies — Chapter 9 — MSME and Business Entrepreneurship. Verified by NCERT Help Editorial Team. Reviewed on 29 Jul 2026. Last updated 10 Aug 2026.