NCERT Solutions Class 9 Social Science (Understanding Society: India and Beyond, Part II) Chapter 6 – From Ideas to Startups
Circle of Learning • New NCERT textbook (2026-27) • In-text questions, activities and end-of-chapter questions – complete answers
The Big Questions
Answer
How does entrepreneurship impact society and the economy?
Entrepreneurs create jobs and income, produce goods and services, pay taxes that fund roads, schools and hospitals, bring innovations that improve the quality of life and contribute through corporate social responsibility. Lijjat Papad, for example, made thousands of women financially independent, and startups drive growth towards Viksit Bharat 2047.
Answer
What are some functional areas of a business?
The four key functional areas are management and operations (day-to-day running and production), finance and accounting (managing money and records), human resources (managing people) and marketing and sales (creating awareness and driving sales).
Answer
How to develop a business plan?
A business plan is a written blueprint of the goals of a business and the steps to reach them. It is developed by studying needs and the idea, potential customers, money and costs, location, human resources, pricing and profits, promotion or marketing, and challenges and risks.
Young Entrepreneurs Challenge (The lemonade stall)
Answer
What do you think is required to run the stall?
(i) Planning – deciding the product, estimating how many glasses will be sold and the money needed.
(ii) Raw materials and equipment – lemons, sugar, salt, water, ice, a jug, glasses and a table.
(iii) Pricing – fixing a price per glass that covers costs and gives a profit but is affordable.
(iv) Team – classmates to prepare drinks, serve, handle cash and keep the stall clean.
(v) Promotion – a banner, a catchy name and inviting visitors.
(vi) Records – noting expenses and sales to calculate profit or loss, and collecting feedback on how many people liked the drink.
From a Dead Mouse to Riches (Jataka Tale)
What can you take away from the tale? Is it about spotting opportunities or working smart? What kind of traits do you think entrepreneurs need to have? Discuss with your classmates.
Answer
The tale teaches that even a very small start can grow into a fortune through intelligence, hard work and step-by-step growth. It is about both spotting opportunities and working smart: the young man saw value where others saw none (a dead mouse for a hungry cat, fallen branches as firewood) and reinvested every small earning into a bigger opportunity. He also stayed grateful and used his wealth to help the community.
Traits entrepreneurs need: curiosity and alertness to opportunities, creativity, hard work, willingness to take risks, patience and perseverance, good decision-making, honesty and gratitude, and a sense of responsibility towards society.
Think About It (From Rooftop to Revolution – Lijjat Papad)
Answer
What problem was Lijjat solving beyond just selling papads?
Beyond selling papads, Lijjat was solving the problem of women's financial dependence and lack of income opportunities. It let homemakers earn while managing household work, made every member an equal owner who shared profits, and later supported members' children with scholarships, empowering women and their communities.
What challenges do you think the founders could have faced at the start? How might they have overcome them?
Answer
Challenges: very little money (only ₹80), borrowed equipment, no factory, no business training, no investors, maintaining consistent quality with work done in many homes, finding buyers, and possibly social doubts about women working.
How they overcame them: unity and grit, a cooperative model in which all were equal owners, strict insistence that 'the quality had to be consistent', a simple system of taking dough home in the morning and returning papads in the evening, slow growth by reinvesting earnings, and building a trusted brand that later expanded across India.
Can you think of a similar cooperative idea you could start in your community?
Answer
Sample answer: A women's cooperative that makes and sells pickles, millet snacks or masalas; a cooperative of local artisans selling handloom or bamboo products online; or a dairy cooperative where small farmers pool milk, as in the Amul model. Members would contribute work, share profits equally and maintain a common quality standard.
Let's Explore (Entrepreneurs in your vicinity and functional areas)
Interview two people in your vicinity who run a business and find out about their journey: why they started the business, the challenges they faced, the risks taken and what they learnt.
Answer
Sample interview summary:
Question | Tailor (Ramesh ji) | Grocery shop owner (Meena ji) |
Why did they start? | Had stitching skills and wanted to be self-employed | Nearby families had to travel far for daily needs |
Challenges faced | Few customers at first, competition from readymade clothes | Arranging money for stock, managing credit sales, competition from online stores |
Risks taken | Borrowed money to buy a sewing machine and rent a shop | Used family savings and a small bank loan |
Learning | Timely delivery and good finishing bring repeat customers | Keeping accounts, honest dealing and home delivery build trust |
Prepare a short report on the tasks an entrepreneur performs at each stage, with reference to Fig. 6.2.
Answer
Sample report: An entrepreneur (i) identifies a problem and is determined to solve it with an innovative solution – for example, noticing that the area has no bakery; (ii) takes risks by investing money and time – using savings or a loan to buy an oven; (iii) combines the factors of production – land (premises), labour (bakers), capital (equipment) and raw materials; (iv) makes key decisions on operations – what to bake, prices, timings and marketing; and (v) contributes to the welfare of society – providing fresh food, employment and paying taxes.
Based on the case study of Mohan Singh Oberoi, which functional area helped improve the quality of the company's products? How did different functional areas work together to make the business successful? Create a business plan for your business idea using the template given on Page 142.
Answer
Management and operations improved the quality of the company's services – hotels were renovated and run efficiently to high standards, with customer satisfaction as the top priority; human resources supported this by hiring and training skilled staff.
The functional areas worked together: human resources provided trained staff; finance managed money carefully to support growth and expansion; operations kept the hotels efficient and of high standard; and marketing built a trusted brand known for luxury and quality service. Each area supported the others, turning a small hotel bought in 1934 into one of the world's most respected hotel brands.
(For the business plan, see the completed sample in Question 11 of Questions and activities.)
Let's Explore (Traditional entrepreneurial communities)
Find out more about other regional communities who have excelled as entrepreneurs.
Answer
Sample answer:
(i) Marwaris (Rajasthan) – traders and bankers who spread across India, known for trading networks and later for founding major industries.
(ii) Gujarati merchant communities – long tradition of trade in textiles and overseas commerce, already prominent in the Indian Ocean trade from the 16th century.
(iii) Parsis (Mumbai) – pioneers in shipbuilding, textiles, steel and other industries.
(iv) Sindhis – known for trade and businesses in India and across the world.
(v) Nadars (Tamil Nadu) – successful in trade, matches and fireworks (Sivakasi) and retail.
Like the Chettiars, these communities show trust-based dealing, careful accounting, risk-taking and reinvestment in community welfare.
Questions and activities
Explain why a business can fail even with a great idea if one functional area (finance, HR, operations, or marketing) is weak. If you were running a bakery, which functional area would you prioritise first and why?
Answer
The functional areas depend on one another, so weakness in any one can sink the whole business:
(i) Weak finance – costs exceed revenue, cash runs out and rent or suppliers cannot be paid.
(ii) Weak HR – untrained or unmotivated staff lead to poor hygiene, mistakes and bad service.
(iii) Weak operations – late production, wastage of perishable stock or inconsistent quality drive customers away.
(iv) Weak marketing – even excellent products do not sell if people do not know about them.
For a bakery, I would prioritise management and operations first, because a bakery's success depends on fresh, high-quality products made every day without delay or wastage; quality brings repeat customers and good word of mouth. Finance would be a close second, to control costs and manage cash flow.
Do you think innovation alone is enough to make a business successful? Why or why not?
Answer
No. Innovation is the starting point, but a business also needs planning, money, skilled people, efficient operations, marketing and good customer service. Mohan Singh Oberoi succeeded not only through his vision but through hard work, careful financial management, trained staff and a trusted brand. A new product also needs fair pricing and the ability to handle risks such as competition and rising costs; many innovative startups fail because of weak management.
"A business plan is a dynamic roadmap for a startup." Explain this statement with suitable examples. When should one change the business plan?
Answer
A business plan is a roadmap because it sets goals and the steps to reach them – needs, customers, costs, location, people, prices, marketing and risks – and guides decisions. It is dynamic because it is not fixed; it must be updated as conditions change.
Examples: A bakery planned to sell only bread and buns, but customers ask for birthday cakes, so it adds cake orders. If flour prices rise sharply, it may revise prices or offer cheaper mini cake jars. Lijjat changed its plan in the 1980s and 90s to add flour, masalas and soaps and start exports.
When to change: when customer preferences change, costs or prices change, new competitors appear, sales are lower or higher than expected, new technology or online selling opens new chances, or the business wants to expand.
Do you think every entrepreneur should think about the impact of their goods or services on society and the environment? Explain using relevant examples.
Answer
Yes. Businesses are part of society and use its resources, so they should create value without causing harm.
(i) Products like eco-friendly jute bags that replace plastic, or recyclable packaging in a bakery, protect the environment.
(ii) Lijjat empowered thousands of women and gave scholarships to their children.
(iii) The Chettiars reinvested profits in temples, education and community welfare.
(iv) Businesses contribute through jobs, taxes and corporate social responsibility in education, health and environment.
Responsible businesses also earn customers' trust, which supports long-term success, while harmful products and pollution can lead to loss of reputation and legal action.
Read the case of the Dandekar brothers and answer: What entrepreneurial qualities did they display? What opportunity did they identify in the market? Was travelling to Glasgow a risky decision? Which functional area helped the company improve its products? How did they serve society apart from earning profits?
Answer
(i) Qualities: perseverance (they did not give up despite financial problems and lack of customer trust), resourcefulness (using recycled glass bottles), focus on quality and affordability, willingness to learn, innovation and risk-taking.
(ii) Opportunity: Artists in India did not have access to good-quality art materials, so there was a gap in the market for colours and art supplies suited to Indian needs.
(iii) Yes, it was a risky decision – travelling abroad cost money and time and there was no guarantee of success – but it was a calculated risk that improved their knowledge of colour chemistry and paid off.
(iv) Management and operations, especially research and production – the laboratory they set up developed better colours and art supplies.
(v) They provided good-quality stationery at affordable prices to students and artists, developed art materials suited to Indian needs instead of depending on imports, and created employment.
How do you think entrepreneurship is important for India's goal of becoming a developed nation by 2047?
(i) Jobs: India has a large young population; startups and enterprises create employment and income for households.
(ii) Innovation: Startups in e-commerce, fin-tech, health-tech and agri-tech solve real problems and improve the quality of life.
(iii) Economic growth: More goods and services boost economic activity, and taxes fund roads, schools and hospitals.
(iv) Self-reliance: Local manufacturing and solutions reduce import dependence, supporting Atmanirbhar Bharat.
(v) Inclusive development: Cooperatives and small enterprises empower women, rural areas and smaller cities.
Answer
With about 120 unicorns in 2025 and the world's third-largest startup ecosystem, entrepreneurship can help India become a developed, prosperous and sustainable nation by its 100th year of independence.
Choose a product or service and develop a business plan for it using the template: business name, business idea, target customers, product/service and price, marketing idea, basic cost and expected profit.
Answer
Sample business plan:
Business name: PaperLeaf Bags
Business idea: Making eco-friendly paper bags from old newspapers to replace plastic bags.
Target customers: Local grocery shops, sweet shops, medical stores and families buying gift bags.
Product and price: Plain bags at ₹1.50 each (sold in bundles to shops) and hand-decorated gift bags at ₹15 each.
Marketing idea: Free samples to shopkeepers, posters with the message 'Say No to Plastic', a stall at the school fair and posts on the school's social media page.
Basic monthly cost: old newspapers ₹400 + glue ₹250 + jute string ₹300 + colours and stamps ₹200 + transport ₹300 = ₹1,450.
Expected revenue: 1,500 plain bags × ₹1.50 = ₹2,250; 100 gift bags × ₹15 = ₹1,500; total ₹3,750.
Expected profit: ₹3,750 – ₹1,450 = ₹2,300 per month.
Find out about various government schemes to promote entrepreneurs in India. Learn about the eligibility requirements of these schemes. Prepare a write-up and discuss in the class.
Answer
Sample write-up:
Scheme | Purpose | Main eligibility (broad) |
Startup India | Recognition, tax benefits, easier compliance, funding support and incubation for startups; supports Atmanirbhar Bharat | A young company (registered for not more than 10 years) working on an innovative or scalable product or service, within a turnover limit |
Pradhan Mantri Mudra Yojana | Collateral-free loans for micro and small businesses in categories Shishu, Kishore and Tarun | Individuals or small non-farm units in manufacturing, trading or services |
Stand-Up India | Bank loans to set up new (greenfield) enterprises | Women and SC/ST entrepreneurs aged 18 years or above |
Prime Minister's Employment Generation Programme (PMEGP) | Subsidy-linked loans to set up new micro enterprises and generate employment | Individuals above 18 years; minimum education for larger projects; new units only |
Atal Innovation Mission | Atal Tinkering Labs in schools and incubation centres to build innovation | Schools, students and innovators through selected institutions |
Note: Loan limits and conditions are revised from time to time, so students should confirm current details on the official scheme websites.
Take any popular brand and identify: the problem it tackles, its initial target customers, how it differentiated itself from other competitors or brands, and the resources it may have started with.
Answer
Sample answer – Amul:
(i) Problem tackled: Dairy farmers in the Kheda (Kaira) district of Gujarat were exploited by middlemen and got low prices for their milk.
(ii) Initial target customers: Milk consumers in Bombay (now Mumbai), supplied through the city's milk scheme.
(iii) Differentiation: A cooperative owned by the farmers themselves, so profits went back to them; reliable quality at affordable prices; later, products like butter, cheese and milk powder and the famous Amul girl advertisements.
(iv) Starting resources: Milk from a small number of village cooperative societies, the farmers' unity, and leadership of people like Tribhuvandas Patel and Dr Verghese Kurien.
Over the next week, observe your daily routine at school and home. Identify 2–3 problems or inconveniences and answer the given questions in a tabular format.
Answer
Sample answer:
Question | Problem 1: Heavy school bags | Problem 2: No healthy snacks near school | Problem 3: Old textbooks thrown away |
Who faces this problem? | Students, especially younger ones | Students and teachers | Students and parents |
How often does it occur? | Every school day | Daily during breaks | Every new session |
Why hasn't it been solved yet? | No lockers; timetable not planned to reduce load | Shops sell only packaged junk food | No organised system to collect and resell books |
What business idea could solve it? | Low-cost rented lockers or a planner app for daily books | A healthy-snack stall or tiffin service with millet snacks and fruit | A book exchange that buys, repairs and resells used books |
Would people pay for your solution? | Yes, a small monthly fee | Yes, if affordable and tasty | Yes, used books at half price save money |
Think of your startup idea and fill in the business plan template.
Answer
Sample completed template (continuing the PaperLeaf Bags idea):
a. Business idea – Name: PaperLeaf Bags; Product: Eco-friendly paper bags from old newspapers; Tagline: 'Carry Green, Live Clean'.
b. Entrepreneur profile – Founders: four Class 9 students. Why this idea: we saw plastic bags choking drains in our locality. Problem solved: reduces plastic use and gives shops a cheap, eco-friendly alternative.
c. Target customers – Local residents and businesses (grocery, sweet and medical shops), parents buying gift bags. They want cheap, sturdy bags and many are trying to avoid plastic.
d. Market research question | Findings |
What do the customers need? | Low-cost, strong bags in two or three sizes, delivered regularly |
What products or services already exist? | Plastic bags (banned in many places), costly cloth bags |
How is your idea different? | Cheaper than cloth bags, made from waste paper, locally made and delivered |
e. Product description – Paper bags in small, medium and large sizes with strong glued bases; decorated gift bags with jute handles. Benefits: biodegradable, low-cost, reuses waste.
f. Resource | What is needed and how much? |
Human Resources | 4 students working about 6 hours a week; one adult mentor |
Finance | About ₹1,500 to start, from our savings |
Materials | Old newspapers, glue, jute string, colours |
Technology | Mobile phone for orders and social media; a paper-cutting template |
Infrastructure | A working table and storage space at home |
g. Operations plan – Collect newspapers
⇒ cut to size using templates
⇒ fold and glue
⇒ dry and check quality
⇒ pack in bundles of 100
⇒ deliver to shops
⇒ collect payment and feedback.
h. Marketing plan – Posters, school events, social media, word of mouth and visits to the local market.
i. Item (monthly) | Cost (₹) |
Old newspapers | 400 |
Glue | 250 |
Jute string | 300 |
Colours and stamps | 200 |
Transport | 300 |
Total Cost | 1,450 |
Source of income (monthly) | Amount (₹) |
1,500 plain bags × ₹1.50 | 2,250 |
100 gift bags × ₹15 | 1,500 |
Total Revenue | 3,750 |
Source of finance: own savings. Expected profit = Revenue – Cost = 3,750 – 1,450 = ₹2,300 per month.
j. Risks and challenges – Bags tearing if the quality is poor; rain damaging stock; competition from cheap plastic; balancing work with studies.
k. Social and environmental impact – Reduces plastic waste and drain blockage, reuses waste paper and spreads awareness about sustainable living.
l. Conclusion – The business has low costs, a clear demand from shops looking for plastic alternatives and a strong environmental message, so it can grow steadily.
Visit a factory or a production unit. Prepare questions, observe the production process, create a process map, identify barriers to growth and recommend practical solutions. Share your findings in a presentation and report.
Answer
Sample report (visit to a small biscuit-making unit):
(i) Introduction: The unit makes biscuits and rusks and sells to wholesalers and local shops; it was started 12 years ago by the owner with a bank loan.
(ii) Process map: Raw materials (flour, sugar, oil)
⇒ mixing
⇒ moulding/cutting
⇒ baking in ovens
⇒ cooling
⇒ quality check
⇒ packing
⇒ storage
⇒ wholesalers and retailers
⇒ consumers.
(iii) Resources: Raw materials, mixers and ovens, about 20 workers, a supervisor, electricity and delivery vans.
(iv) Barriers identified: Financial – difficulty in getting more credit to expand; Technical – old ovens use more power; Human resource – shortage of trained workers; Market – competition from big brands; Regulatory – time taken for food safety licences and renewals.
(v) Suggested solutions: apply for government schemes such as Mudra loans; buy energy-efficient ovens; train workers through skill development programmes; build a local brand with attractive packaging and online sales; use online single-window systems for licences.
(vi) Reflection: Running a business needs coordination of all functional areas, and small units need support to grow.
Extra Important Questions
Multiple Choice Questions
Shri Mahila Griha Udyog Lijjat Papad was registered as a cooperative society in:
Answer
(a) 1959 (b) 1962 (c) 1980 (d) 2023
Answer: (b) 1962
2. A startup valued at over 1 billion dollars is called a
(a) Unicorn (b) Cooperative (c) Mortgage (d) Franchise
Answer: (a) Unicorn
Which of these is a fixed cost for a bakery?
Answer
(a) Flour (b) Packaging material (c) Rent (d) Sugar
Answer: (c) Rent
4. Profit is calculated as
(a) Total Revenue + Total Expenses (b) Total Revenue – Total Expenses (c) Total Expenses – Total Revenue (d) Revenue × Expenses
Answer: (b) Total Revenue – Total Expenses
The Nattukottai Chettiar community, a traditional entrepreneurial community, is from:
Answer
(a) Gujarat (b) Rajasthan (c) Tamil Nadu (d) Punjab
Answer: (c) Tamil Nadu
6. Mohan Singh Oberoi bought his first hotel in 1934 by
(a) Taking a government grant (b) Mortgaging his wife's jewellery and investing his savings (c) Selling shares (d) Borrowing from foreign merchants
Answer: (b) Mortgaging his wife's jewellery and investing his savings
Short Answer Questions
Answer
What is entrepreneurship? Who is an entrepreneur?
Entrepreneurship is the process through which an individual or a group converts a potential idea into a business venture by identifying opportunities, taking risks and creating value. An entrepreneur is a person who identifies a problem, invests money and time, combines factors of production, makes key decisions and contributes to society through innovation.
Distinguish between fixed cost and variable cost with examples.
Answer
Fixed costs remain the same whatever the volume of production or sales in the short term, such as rent and insurance. Variable costs change in direct proportion to output, rising as production rises, such as raw materials like flour and sugar and packaging.
From the profit and loss account of ABC Bakery, calculate the profit before tax and profit after tax.
Answer
Total income = 1,20,000 + 75,000 + 85,000 + 15,000 = ₹2,95,000. Total expenses = 1,00,000 + 12,000 + 40,000 + 30,000 + 15,000 + 8,000 + 7,000 + 10,000 = ₹2,22,000. Profit before tax = 2,95,000 – 2,22,000 = ₹73,000, and profit after tax = 73,000 – 13,000 = ₹60,000.
Why are failures considered part of the entrepreneurial journey?
Answer
Every business carries a risk of failure, and some startups struggle or close down. If an honest effort has been made, failure is not wrong; it gives lessons that help entrepreneurs develop stronger ideas and build better businesses, in the spirit of Swami Vivekananda's call, "Arise, awake and stop not till the goal is reached."
Long Answer Questions
Explain the key considerations in making a business plan with the example of a bakery.
(i) Needs and idea: Find out what customers want – fresh bread, cakes or healthier whole-wheat products not available in the area.
(ii) Potential customers: Decide whether to target children (cupcakes), young adults (savoury snacks) or families (everyday bread).
(iii) Money and costs: Estimate the cost of ovens, rent, salaries, ingredients and packaging, and arrange funds from savings, loans or investors.
(iv) Location: Choose a busy area near schools, colleges or markets, and consider online orders.
(v) Human resources: Decide how many bakers, helpers and billing or delivery staff are needed and train them.
(vi) Pricing and profits: Fix prices that cover costs, give a profit and stay affordable, such as mini cake jars.
Answer
(vii) Promotion: Use social media, posters, special offers, attractive packaging and good customer service.
(viii) Challenges and risks: Plan for competition, rising raw material costs, perishable stock, consistent quality and changing demand.
Describe the contribution of businesses and startups to society and the economy.
(i) Creating jobs and income: Businesses employ people and support households; Lijjat alone had over 45,000 women members by 2023.
(ii) Producing goods and services: They meet people's needs and boost economic activity.
(iii) Paying taxes: Taxes fund roads, schools and hospitals.
Answer
(iv) Making innovations: Startups in e-commerce, fin-tech, health-tech and agri-tech offer new solutions and drive growth; India is the third-largest startup ecosystem with about 120 unicorns in 2025, with hubs like Bengaluru, Hyderabad, Mumbai and Delhi NCR.
(v) Improving quality of life: Better medicines, transport and technology.
(vi) Corporate social responsibility: Support for education, environment and healthcare.
Schemes like Startup India support this, helping India move towards Atmanirbhar Bharat and Viksit Bharat 2047.