CMAT 2025: Innovation and Entrepreneurship Preparation Tips with Sample Questions

CMAT Innovation and Entrepreneurship questions are easy. Basic knowledge of business studies and entrepreneurship is enough to prepare for this section in no time. Know all about CMAT Innovation and Entrepreneurship section. Also get sample questions on Innovation and Entrepreneurship to prepare for CMAT 2025.

CMAT preparation tips for Innovation and Entrepreneurship section

CMAT Innovation and Entrepreneurship is easy to crack if you know the basics of business management. This section was introduced as an optional section in CMAT 2021 but since then it appears as a mandatory section in the exam. The CMAT Innovation and Entrepreneurship section carries 20 questions of 4 marks each. For preparation of this section you need to rely upon guidance and previous years CMAT question papers.

CMAT 2025 will be held on January 25, 2025. In the CMAT exam, the questions of Innovation and Entrepreneurship will be straightforward and moderate. If you've studied Business Studies before, you will have a fair idea of what to focus on for preparation of this section. CMAT Innovation and Entrepreneurship is a knowledge based section and can be mastered by understanding concepts. There are no formulae or calculations in this section. Preparation can also be done through CMAT Innovation and Entrepreneurship book and PDF material which is readily available. But the best way to prepare for it is by practicing sample questions. 

CMAT 2025: Innovation and Entrepreneurship Preparation

What is Innovation and Entrepreneurship?

Innovation and Entrepreneurship section of CMAT 2025, section is basically all about business knowledge. To crack this section candidates need to know the following:

• Concepts of innovation and business
• Innovation of the life cycle
• Entrepreneurship and start ups
• Entrepreneurial development
• Strategies of starting a venture
• Types of start ups
• Entrepreneurship and government policies

Difference Between Entrepreneurship vs Business

Check below the main features of entrepreneurship and business which are the key differentiators. This is critical to understanding the CMAT Innovation and Entrepreneurship section:

Who is an Entrepreneur?

An entrepreneur is someone who has the ability and desire to establish, operate and succeed in a startup venture along with risk entitled to it, to make profits. The entrepreneurs are considered innovators or the source of new ideas who revolutionise the market by replacing the old with their new invention.

What is Entrepreneurship?

Entrepreneurship can be defined as the ability and efforts to develop, organize and run a business enterprise in order to make a profit. The entrepreneur has to be aware of risks involved and have the willingness to take those risks.

Types of Entrepreneurship

• Small Business Entrepreneurship: This is referred to as those businesses, which are set up by individuals for self-sustenance and self-employment such as grocery store, non-essential and essential items shops, tailoring, salon, consultancy, ticketing & travel agency, etc. This type of business doesn’t require capital from the market.
• Scalable Startup Entrepreneurship: A business started with a new idea aiming to grow into a profitable company can be defined as a Scalable Startup. This type of business model requires external capital for expansion. The most famous examples of scalable startups are Facebook, Skype, and Twitter.
• Large company Entrepreneurship: This type of entrepreneurship refers to new businesses established within the existing business with the aim of becoming the market leader in the said field. It includes huge investments, solid infrastructure and innovative products to beat competition.
• Social Entrepreneurship: As the term suggests, this type of entrepreneurship refers to the business set for catering to social needs and contributing to welfare of vulnerable sections of the society. The sole aim of Social Entrepreneurship is not profit.

Characteristics of an Entrepreneur

An entrepreneur is not a professional. An entrepreneur is a someone who is a leader, who is a visionary, who is a risk taker and who has the drive to convert an idea in to reality. Some of the key characteristics of an entrepreneur are given below:

• Risk taker
• Innovative
• Visionary
• Leadership qualities
• Flexibility
• Knowledge

CMAT Innovation and Entrepreneurship Syllabus

Given below is are the topics included in the syllabus of Innovation and Entrepreneur section of CMAT exam 2025. Candidates must go through these topics in detail:

• Concepts of Entrepreneurship
• Overview of Entrepreneurship
• Evolution of Entrepreneurship in India
• Role of Entrepreneurship in Economic Development
• Theories and Models of Entrepreneurship
• Framework of Entrepreneurship Theories
• Models of Entrepreneurship
• Emerging Models of Corporate Entrepreneurship
• Dimensions of Entrepreneurship
• Entrepreneurial Society
• Entrepreneurial Culture
• Rural Entrepreneurship
• Women Entrepreneurship
• Emerging Trends in Social Entrepreneurship
• Principles of Business Organisation
• Motivation, Communication and Leadership

Also Read:

In CMAT, the questions in Innovation and Entrepreneurship section will be based on these concepts. The questions will be in MCQ format and candidates will be required to select the right or closest option. Check out below some of the Innovation and Entrepreneurship questions from CMAT 2021 question paper.

CMAT Innovation and Entrepreneurship questions for practice

Q: What is the title of the Authorised Biography of JRD TATA?

A: My Times: An Autobiography

B: Beyond the Last Blue Mountain

C: Ace Against Odds

D: Wings of Fire

Q: The process of gathering information about market or socio-economic trends is called:

A: Need for achievement

B: Tenacity

C: Neuroticism

D: Environmental Scanning

Q: India’s first live Payments Bank was launched by:

A: Aditya Birla Idea

B: Cholamandalam

C: Bharti Airtel

D: Paytm

Q: Which city is ranked as one of the world’s five fastest growing startup cities?

A: Cochin

B: Ahmedabad

C: Bangalore

D: Nagpur

Q: A business where an individual is both the owner and conductor of the business affairs is called:

A: Proprietorship Firms

B: Partnership Firms

C: Private Limited Company

D: None of the above

Q: Which of the following is not one of the traits of an entrepreneur?

A: Opportunity Exploration

B: Perseverance

C: External locus of control

D: Risk Taking

The section will also have passage based questions.

Practice Free CMAT Mock Test by Shiksha

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