L.10 - Enterprise & Government

Those who are Government servants, Strive to be emblems of the Nation's pride, Serving people is serving Him, Is a thought they must abide.

UDYAM SHASTRA- Chapter 2,Verse 4

Key Objectives:

The students learn about the economic role government traditionally plays in local communities. They learn how the taxes individuals and businesses pay relate to the circular flow of money , goods and services , and labor . In addition , they act as members of a village punchayat /municipal council and recommend solutions to problems facing the community.

This module and its associated exercises should help the students to :

Identify example of economic goods and services that government often provides.

Use a circular flow diagram to explain the role of government in the economy.

State an opinion about the appropriate economic role of government.

Enterprise Concepts:

Government.: The body of people, usually elected, who provides the overall facilities and framework for smooth functioning of a community or society .

A village for instance has a panchayat, a city has a municipality, a district has a Zilla Parishad (District Board), a state has a State Government and the country has a Central Government.

Enterprise Skills:

The student 'Activities' in each lesson are designed to clarify the ENTERPRISE CONCEPTS of the lesson and develop some ENTERPRISE SKILLS (E.SKILLS). The E.SKILLS included in a lesson may not be exhaustive, but are indicative. E.SKILLS stated in a lesson elsewhere may also get addressed through the activities of a particular lesson.

Some useful E.SKILLS are dealt with below:

Organisation structure analysis.: An entrepreneur needs to understand the structure of institutions like Government Departments that could influence his/her enterprise functioning.

For eg. Licensing departments, various tax departments etc. He also needs to analyse and comprehend structure of other organisations that he/she may have to deal with for eg. Purchase department , Accounts department ,Material inspection department , Supply department etc. of clients and suppliers.

This E. skill to analyse structures of organizations is broadly referred to as " Organisation Structural Analysis".



Instruction To Students

    • Read the case-study below and fill the answers in the work sheet

    • Students should then fill the answers in the worksheet.

    • After completing the activity, each group should present and share its main discussion points with the rest of the class.

Case Study:

Lata got up unusually early. Today was a special day. She was visiting the local municipal office to apply for Permission of Health Department for starting her snacks shop. Lata turned on the water tap to drink a glass of water. She dressed quickly and stepped onto the road. As Lata cycled along the road she came to a cross-road. A police-man was directing the traffic. Lata waited for her turn and cycled on.

She passed the local post-office where the post-men were getting up on their cycles to distribute mail. Lata greeted one of them she knew and cycled on.

Just then she saw a notice in the centre of the road saying “Work in progress. Take diversion.” Lata saw some workers from the electricity department laying an electric cable. She had to get down from her cycle to cross the diversion. Then she climbed her cycle again and drove fast.

As Lata drove past a telephone booth, her friend Ravindra, who owned the telephone booth, hailed her and asked: "Hey! What is the hurry, Lata?”

When Lata reached the municipal office, she saw herself in a large sprawling building and was wondering how to find her way. “Why don’t you read the indicator board to find your way?” suggested another visitor helpfully.

Lata looked at the indicator and started reading the following:

Mayor’s office Room 309

Municipal Commissioner Room 104

Municipal Tax Payment Room 101

Assessor of Taxes Room 102

School Board Office Room 203

Municipal Roads Engineer Room 204

Chief Fire Officer Room 106

Public Gardens Room 207

Health Department Room 209

Octroi Department Room 210

Water & Drainage Room 211

Public Transport Room 216

Lata looked at the indicator board in surprise.”I never knew that the Municipal Government did so many types of jobs for us here?” said Lata to the helpful visitor. Lata then turned on her heels and headed for Room 209.

Work Sheet

1. From the story of “Lata needs a Health Department Permission” , can you spot the many facilities provided by some Government Departments that Lata came across from the time she got up till she reached the municipal office?

Can you guess whether this facility is provided by some Municipal Government, State Government or Central Government? (Example :’Water’ is provided by the municipality).


2. Can you make an ‘Organisation Structure Analysis’ of the municipal office ? Use the questions below to help you.

(Which are major departments? What are their functions? Whom should you approach for what when you are starting your vocational enterprise? Who are some of the important office bearers ? Are they elected or appointed?)


3. Why is there a tax department? How are the Engineer, Fire officer and other municipal staff paid ?



Instruction To Students

        • See the circular flow diagram given below. The flow of goods & services and the corresponding flow of payments is shown between industry and house holds. Fill in the blank boxes with the other flows in the economy.

        • Fill the answers in the worksheet.

        • After completing the activity, each group should present and share its main discussion points with the rest of the class.

Work Sheet

1. List at least five Government services that you have availed of during the last month ?


2. List five goods and services the government buys from entrepreneurs you know?


3. List some jobs your friends and family members do for enterprises?


4. List some jobs your friends and family members do for some government organisation?



Instruction To Students

            • Read the case study below and fill the answers in the work sheet.

            • After completing the activity, each group should present and share its main discussion points with the rest of the class.

Case Study:

Ours is a quiet town of over a lakh of inhabitants. The town has beautiful surroundings.Most of the adult people are simple farmers, small businessmen, local government officials etc. There are small ponds of clean water in different parts of the town.Geographically the town is located ,as if, in a valley formed by hills all around. A municipal school caters to the children’s education till high school.

Twenty years ago, the towns-people observed that more than 70% of their school children fail in the high school exam on account of the subjects of English and mathematics. This topic was debated by the municipal corporators. The visionary mayor of that time said that , she has faith that the children of their town are as intelligent or more intelligent than the children from big cities. “What is more important than passing in English and maths, is whether the children have the skills to make a high quality of living in the economic environment that exists in and around the town, expressed the mayor”. The corporators agreed to this.

The senior citizens of the town then volunteered their efforts to the schools to take special classes of the children in better ways of farming, establishing and running various vocational enterprises, honing their artistic and cultural talents etc. To add to the well-being of the environment, the mayor and her colleagues planted thousands of trees on the hill slopes. These trees are now well grown over the twenty years since they were planted. They make the hills look green and provide beautiful shaded walks for young and old alike. The air in and around the town is unpolluted and the temperature is cool;thanks to the trees and the ponds. The town also earns money from some of the forest produce. All this has brought all round prosperity to our town.

But this year, a wealthy builder from a nearby big city has approached our municipal authorities with a proposal to take over the hills. He has offered to build a well laid out township with modern amenities , schools , shopping plazas and all. It will become like a foreign township , he says. A lot of wealthy people from the cities and abroad, will buy the luxurious houses on the hill slopes as their holiday homes.

But to do all this, the builder says , he will have to cut down all the thousands of trees that have been grown over the last twenty years. Also he will need to pump out all the water from the ponds as this will be required for his buildings. But he has offered to fill up the ponds with soil and build industrial estates on them instead.

The builder argues that all his plans will bring a lot of economic activities to the town.

As a municipal corporator, what factors should I weigh in considering the proposal of the builder. Should I reject the proposal outright , should I accept it outright, or should I put some preconditions? Please advise me.

Work Sheet:

1. What are the good points of this town as it exists today?


2. What are the advantages , if any, in the builders proposal ?


3. What are the disadvantages, if any, in the builder’s proposal ?


4. What is the responsibility of the municipal corporator to the inhabitants of the town in this case?


5. What advice would you give to the municipal corporator? Reject the builder’s proposal outright? Or accept it outright? Or put some preconditions?