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CSEET · Economic and Business Environment · Entrepreneurship Scenario

A start-up in Bengaluru has a promising product but cannot raise enough money to buy machinery and hire staff, even though demand is clearly present. Which challenge faced by entrepreneurs does this primarily represent?

This represents inadequate access to finance. The product has demand, but the start-up cannot raise money for machinery and staff. The difficulty is therefore resource funding, not weak demand, technology obsolescence or excess subsidy, which the scenario does not mention.

  1. AInadequate access to financeCorrect
  2. BLack of market demand
  3. CTechnological obsolescence
  4. DExcess government subsidy

Explanation

Demand is stated to exist, so the market is not the issue. The inability to fund machinery and staff is a shortage of financial resources, a common entrepreneurial challenge. Obsolescence and excess subsidy are not indicated.

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