Which of the following is not a characteristic of Entrepreneurship?
Answer & explanation
Correct answer: option 1
The correct answer is Option (1) → Contribution to GDP
Option (1) Contribution to GDP — Not a characteristic of entrepreneurship (Correct). This is a function of entrepreneurs in economic development: they generate income by organising production. It is not a characteristic.
Option (2) Systematic Activity — A characteristic of entrepreneurship (Incorrect). Entrepreneurship is a systematic, step-by-step activity, not a gift or chance.
Option (3) Innovation — A characteristic of entrepreneurship (Incorrect). Entrepreneurship is creative and involves innovation.
Option (4) Risk-taking — A characteristic of entrepreneurship (Incorrect). Entrepreneurship works with the risks and uncertainties of business.
Note: This question is from the chapter Entrepreneurship Development, which is not in the current NCERT book (2026-27). The chapter is in the pre-rationalised NCERT, from which the extract below is taken. NCERT (Pre-rationalised Edition): “We would like to define entrepreneurship as a systematic, purposeful and creative activity of identifying a need, mobilising resources and organising production with a view to delivering value to the customers, returns for the investors and profits for the self in accordance with the risks and uncertainties associated with business. This definition points to certain characteristics of entrepreneurship that we turn our attention to.” “Entrepreneurship is creative also in the sense that it involves innovation- introduction of new products, discovery of new markets and sources of supply of inputs, technological breakthroughs as well as introduction of newer organisational forms for doing things better, cheaper, faster and, in the present context, in a manner that causes the least harm to the ecology/environment. …” “It may be pointed out that the possibility of absolute ruin may be rare as the entrepreneur does everything within his control to de-risk the business. …”
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