CBSE Class 9 · From Ideas to Startups

Entrepreneurship Class 9: Lijjat Papad, Oberoi and India's Startups

Updated 17 October 2026 · Fact-checked

Entrepreneurship is the process of turning an idea into a business venture. An entrepreneur spots a problem, combines factors of production, takes risks, makes key decisions and contributes to society. The chapter illustrates it through Lijjat Papad (seven women, Rs 80, 1959; a cooperative), Mohan Singh Oberoi (a hotel clerk who built a hotel chain), traditional Chettiar traders and India's startup ecosystem.

Notice the entrepreneur's steps run in order, and success loops back to inspire new ideas, as in Lijjat, Oberoi hotels and startups.

Illustration drawn for QuestionBuddy.

Understand Entrepreneurship, Lijjat Papad, Mohan Singh Oberoi and Startups

Entrepreneurship. The process by which a person or group converts an idea into a business venture. NCERT's school nimbu pani stall shows the essence: deciding what to spend on lemons and sugar, where to get glasses, what to charge, and whether you made a profit (money left after paying costs) or a loss. It is planning, organising and learning by doing.

What an entrepreneur does. Identifies a problem and is determined to solve it innovatively; combines the factors of production; takes risks by investing money and time; makes key decisions; and contributes to society's welfare through innovation. Entrepreneurs see opportunities where others see challenges: for example drones for traffic surveillance or jute bags to replace plastic.

The Jataka tale. A poor young man turns a dead mouse into a fortune step by step: two coins, then fruit and water, flowers, firewood, trading in grass, a refreshment shop and deals with foreign merchants. He then gives half to the merchant whose words inspired him and helps the city. Lessons: spotting opportunities, working smart, gratitude and giving back.

Lijjat Papad.

1959: seven homemakers from a Mumbai chawl began on a rooftop with borrowed equipment, a recipe and Rs 80, to earn extra income.
No factory at first: each woman took dough home, rolled papads between chores and returned them by evening, with the rule that quality had to be consistent.
It is a cooperative society: every member is an equal owner and profits are shared equally. It was registered in 1962 as Shri Mahila Griha Udyog Lijjat Papad ("lijjat" means tasty in Gujarati).
By 2023: over 45,000 women members, 83 branches and an annual turnover of about Rs 1,600 crore, with scholarships for members' children.
Impact: financial independence for women, community empowerment and a self-reliant large business.

Mohan Singh Oberoi. Born in Punjab in 1898; his father died when he was an infant. He worked as a hotel desk clerk in Shimla for Rs 50 a month but learnt every part of hotel work. In 1934, he took a bold risk, using his wife's jewellery as security for a loan to buy a small hotel. He turned struggling hotels around and built one of India's largest hotel chains, receiving the Padma Bhushan in 2001. His story shows human resources (skilled staff), finance (careful money management), operations (efficient renovation) and marketing (a trusted brand) at work.

Traditional entrepreneurs. The Nattukottai Chettiars of Tamil Nadu were traders, bankers and moneylenders across India, Sri Lanka, Burma, Malaysia and South-East Asia, known for trust-based lending, strong accounting and reinvesting profits into trade, temples, education and welfare.

Startups. Young, early-stage companies with innovative products. India is the third-largest startup ecosystem, with about 120 unicorns (startups valued at over 1 billion dollars) in 2025, in fields such as e-commerce, fin-tech, health-tech and agri-tech; hubs include Bengaluru, Hyderabad, Mumbai and Delhi NCR. Failure is possible and is a source of learning. Government support comes through Startup India, aligned with Atmanirbhar Bharat and Viksit Bharat 2047.

How businesses help society: better quality of life, jobs and income, taxes, goods and services, innovation and corporate social responsibility.

Entrepreneurship, Lijjat Papad, Mohan Singh Oberoi and Startups: key facts

Entrepreneur's tasks: Identify a problem
Combine factors of production
Take risks
Make key decisions
Contribute to welfare; Five tasks.
Lijjat Papad: 1959, seven women, Rs 80
Cooperative: equal owners, equal profit share
Registered 1962
By 2023: 45,000+ members, 83 branches, Rs 1,600 crore; Key numbers.
Mohan Singh Oberoi: Born 1898 in Punjab
Shimla desk clerk, Rs 50 a month
1934 risk: wife's jewellery as security
Padma Bhushan 2001; Key facts.
Startups in India: Third-largest ecosystem
About 120 unicorns in 2025
Startup India
Atmanirbhar Bharat
Viksit Bharat 2047; Government support.
Business contribution: Quality of life
Jobs and income
Taxes
Goods and services
Innovation
CSR; Six points.

How to answer Entrepreneurship, Lijjat Papad, Mohan Singh Oberoi and Startups questions

Questions ask for the meaning of entrepreneurship, qualities and tasks of an entrepreneur, the lessons of Lijjat Papad and Oberoi, and the role of startups. Case questions give a story and ask you to identify the entrepreneurial qualities.

1Define entrepreneurship in one line: idea to venture.
2Link each task to a clue in the story (for example "put up jewellery as security" is risk-taking).
3For Lijjat, mention year, amount, number of women, cooperative nature and one later fact.
4For startups, give the ecosystem rank, unicorn meaning and one government initiative.
5Conclude with the social contribution of entrepreneurs: jobs, innovation, self-reliance.

Entrepreneurship, Lijjat Papad, Mohan Singh Oberoi and Startups in real life

The idea, met in an everyday situation. Answer the question in your own words, then compare with the model answer. The one-line hook is what to remember.

Turning waste into a product

Suppose a student notices that her colony throws away many cloth scraps and starts a small unit making cloth bags from them, employing two neighbours.

Which entrepreneurial tasks is she performing?

Try it first, then show the solutionSolution

Identifies a problem: waste cloth.
Combines factors of production: scraps, labour, a sewing machine and her own idea.
Takes a risk with her money and time and contributes to welfare by creating work and reducing waste.

Answer: She is identifying a problem, combining factors, taking a risk and contributing to society, which are the tasks of an entrepreneur.

Memory hook: See the gap, fill the gap.

A cooperative bakery

Suppose five women start a home bakery as a cooperative where every member owns an equal share and profits are divided equally.

How is this like Lijjat Papad and what is the benefit?

Try it first, then show the solutionSolution

Equal ownership and profit sharing match the cooperative model.
Everyone has a stake, so quality and effort are shared concerns.
Members gain income and independence.

Answer: It is a cooperative like Lijjat: every member is an equal owner and profits are shared equally, which gives all members a stake in quality and a share of the income.

Memory hook: Equal owners, equal rewards.

Tricks to remember Entrepreneurship, Lijjat Papad, Mohan Singh Oberoi and Startups

Short memory aids. Say each one aloud once, then use it on a question the same day.

E-N-T-R-E
Explore a problem, Network resources, Take risks, Resolve decisions, Enrich society.
Use it when: Tasks of an entrepreneur.
Lijjat 1-9-5-9
Seven women, Rs 80, 1959; registered 1962.
Use it when: Lijjat dates.
Unicorn
Unicorn = startup valued over 1 billion dollars.
Use it when: Definition.

Entrepreneurship, Lijjat Papad, Mohan Singh Oberoi and Startups: solved examples

Ordered from board level to HOTS. Try each one before you open the solution.

Example 1: Which model? · 1 mark · MCQBoard level

Lijjat Papad is run as:
(a) a sole trader business
(b) a cooperative society
(c) a government department
(d) a foreign company

Try it first, then show the solutionSolution

Every member is an equal owner and profits are shared equally: a cooperative (1 mark).

Answer: (b) a cooperative society

Example 2: Entrepreneurship (2 marks) · 2 marks · Very short answerBoard level

Define entrepreneurship and name one risk an entrepreneur takes. (2 marks)

Try it first, then show the solutionSolution

The process of converting an idea into a business venture (1 mark).
Risk: investing money and time that may be lost (1 mark).

Answer: Entrepreneurship is the process by which a person or group converts an idea into a business venture. An entrepreneur takes the risk of investing money and time, which may not bring a profit.

Example 3: Tasks of an entrepreneur (3 marks) · 3 marks · Short answerHarder board level

Explain three tasks of an entrepreneur, using the story of Mohan Singh Oberoi for one. (3 marks)

Try it first, then show the solutionSolution

Identifies a problem or opportunity (1 mark).
Combines factors of production and takes risks (1 mark).
Oberoi: in 1934 he used his wife's jewellery as security for a loan and staked his savings on a small hotel (1 mark).

Answer: An entrepreneur identifies a problem or opportunity, combines the factors of production, and takes risks by investing money and time. Oberoi took a bold risk in 1934 when he put up his wife's jewellery as security for a loan and staked his savings on a small hotel, which he then built into a hotel chain.

Example 4: Assertion-reason: Lijjat · 1 mark · Assertion-reasonHarder board level

Assertion (A): Lijjat Papad began without a factory.
Reason (R): The women took dough home, rolled papads between household tasks and returned them by evening.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.

Try it first, then show the solutionSolution

Both statements follow the chapter's account; R explains A (1 mark).

Answer: (a) Both A and R are true, and R is the correct explanation of A.

Example 5: Lessons of Lijjat (5 marks) · 5 marks · Long answerHOTS / competency

Describe how Lijjat Papad grew from a rooftop venture into a large business and what lessons students can draw. (5 marks)

Try it first, then show the solutionSolution

1959: seven homemakers in a Mumbai chawl began with borrowed equipment, a recipe and Rs 80 (1 mark).
Home-based work with consistent quality as the rule (1 mark).
Cooperative: equal owners, equal profit share; registered in 1962 (1 mark).
By 2023: over 45,000 women members, 83 branches, turnover about Rs 1,600 crore, scholarships for children (1 mark).
Lessons: small start, quality, shared ownership, women's independence, self-reliance (1 mark).

Answer: In 1959 seven homemakers from a Mumbai chawl started on a rooftop with borrowed equipment, a recipe and Rs 80. They made papads at home between chores and returned them by evening, with consistent quality as the rule. It was run as a cooperative in which every member is an equal owner and profits are shared equally, and it was registered in 1962. By 2023 it had over 45,000 women members, 83 branches and a turnover of about Rs 1,600 crore, and gave scholarships to members' children. The lessons are that a small idea with consistent quality, shared ownership and teamwork can grow into a large business and give women financial independence.

Example 6: Case: the mouse and the merchant · 4 marks · Case-basedHOTS / competency

Read the case and answer the questions.

In the Jataka tale, a poor young man hears a merchant say that a clever person can start a business even with a dead mouse. He picks up the mouse, sells it for two coins, uses the coins to buy water and fruit, and then flowers and firewood, until he runs a shop and trades with foreign merchants. He later gives half his wealth to the merchant whose words inspired him.

(i) Which entrepreneurial quality does he show in using the mouse? (1)
(ii) What does reinvesting the coins show? (1)
(iii) What two values does the story teach beyond making money? (2)

Try it first, then show the solutionSolution

(i) Spotting an opportunity where others see none (1 mark).
(ii) He combines resources step by step, working smart and growing the venture (1 mark).
(iii) Gratitude and giving back to society (2 marks).

Answer: (i) He spots an opportunity where others see only a challenge. (ii) Using each earning to start the next activity shows working smart and growing the venture step by step. (iii) The story teaches gratitude, shown by giving half to the merchant, and giving back to society by helping the city.

Where students lose marks in Entrepreneurship, Lijjat Papad, Mohan Singh Oberoi and Startups

The slips examiners see most often, and what to write instead.

Mistake: Defining only profit-making
Narrow definition.
Wrong working
Entrepreneurship means earning profit.
Right working
It is converting an idea into a business venture, with risk and contribution to society.
Do this: Use the full definition.
Usually costs: 1 mark.
Mistake: Wrong Lijjat numbers
Memory slip.
Wrong working
Lijjat started with Rs 800 and 17 women.
Right working
Rs 80 and seven women, in 1959.
Do this: Learn 7-80-1959.
Usually costs: 1 mark.
Mistake: Confusing cooperative and company
Ownership unclear.
Wrong working
Lijjat is owned by one family.
Right working
Every member is an equal owner.
Do this: State equal ownership.
Usually costs: 1 mark.
Mistake: No link to story
Abstract answer.
Wrong working
Entrepreneurs take risks.
Right working
Oberoi mortgaged his wife's jewellery to buy a hotel.
Do this: Add one clue.
Usually costs: 1 mark.

Exam tips

Quote one story clue for every quality you name; the case studies are the examiner's favourites.
Learn the Lijjat figures exactly: 1959, Rs 80, seven women, 1962, 45,000+, 83 branches.
Define unicorn and name two government initiatives for startups.
Use neutral, balanced language when discussing success and failure.

Practice questions on Entrepreneurship, Lijjat Papad, Mohan Singh Oberoi and Startups

Write each answer on paper first. Open the hint only if you are stuck, and the answer only when you have finished.

Q1 · 1 mark · MCQBoard level
A startup valued at over 1 billion dollars is called a:
(a) cooperative
(b) unicorn
(c) monopoly
(d) mortgage
Hint
Mythical animal.
Answer
(b) unicorn
Q2 · 2 marks · Very short answerBoard level
Who were the Nattukottai Chettiars? (2 marks)
Hint
Tamil Nadu traders.
Answer
A traditional entrepreneurial community of Tamil Nadu, who were traders, bankers and moneylenders across India, Sri Lanka, Burma, Malaysia and South-East Asia, known for trust-based lending and good accounting.
Q3 · 3 marks · Short answerHarder board level
Explain three ways in which businesses contribute to society. (3 marks)
Hint
Jobs, taxes, CSR.
Answer
Businesses create jobs and income for people. They pay taxes that fund public services. They also produce goods and services, bring innovation and, through corporate social responsibility, support education, health and the environment.
Q4 · 1 mark · Assertion-reasonHarder board level
Assertion (A): An entrepreneur may fail yet still contribute to learning.
Reason (R): The chapter treats failure as a source of learning for startups.
(a) Both A and R are true, and R is the correct explanation of A.
(b) Both A and R are true, but R is not the correct explanation of A.
(c) A is true, but R is false.
(d) A is false, but R is true.
Hint
Does the reason explain why failure still helps?
Answer
(a) Both A and R are true, and R is the correct explanation of A.
Q5 · 5 marks · Long answerHarder board level
Describe the life and achievements of Mohan Singh Oberoi and identify the functional areas visible in his work. (5 marks)
Hint
Shimla clerk to hotel chain.
Answer
Born in Punjab in 1898, he lost his father as an infant and worked as a hotel desk clerk in Shimla for Rs 50 a month, learning every part of hotel work. In 1934 he took a bold risk, mortgaging his wife's jewellery to buy a small hotel. He turned struggling hotels around, built one of India's largest hotel chains and received the Padma Bhushan in 2001. His work shows human resources (skilled staff), finance (careful management of money), operations (efficient renovation) and marketing (a trusted brand).
Q6 · 3 marks · Short answerHOTS / competency
Suppose a group of students wants to start a small paper-recycling venture in their school. Identify one entrepreneurial task they would perform at each stage: spotting the idea, starting, and growing. Suggest one risk and how they might handle it. (3 marks)
Hint
Problem, combine, risk.
Answer
Spotting: they identify a problem, that used paper is wasted. Starting: they combine factors of production such as labour, collection bins and a little money. Growing: they make decisions on pricing and customers and learn from feedback. A risk is that sales may not cover costs; they can handle it by starting small, keeping a record of costs and revising their plan.

Test your recall

Answer in your head or on paper first, then open the card. Pulling an answer out of memory makes it stick far better than re-reading.

1.When did Lijjat Papad begin and with how much?Show answer
1959, with Rs 80.
2.What does "Lijjat" mean?Show answer
Tasty (in Gujarati).
3.Which year did Oberoi buy his first hotel?Show answer
1934.
4.What is a unicorn?Show answer
A startup valued at over 1 billion dollars.
5.Name a government initiative for startups.Show answer
Startup India.

Entrepreneurship, Lijjat Papad, Mohan Singh Oberoi and Startups: frequently asked questions

What is entrepreneurship?

The process of converting an idea into a business venture.

What are the tasks of an entrepreneur?

Identifying a problem, combining factors of production, taking risks, making key decisions and contributing to society.

Why is Lijjat Papad called a cooperative?

Every member is an equal owner and profits are shared equally.

How big is India's startup ecosystem?

The chapter describes India as the third-largest startup ecosystem, with about 120 unicorns in 2025.