Answer-Statement: In recent years, India’s startup ecosystem has witnessed rapid growth, yet access...

The statement assumes that lack of funding is a major barrier for small-town entrepreneurs, hence, government support is needed.

Question

Statement:
In recent years, India’s startup ecosystem has witnessed rapid growth, yet access to early-stage funding remains limited outside major cities. The government has announced a fund to promote entrepreneurship in tier-2 and tier-3 towns. It believes that supporting smaller city startups will create jobs and reduce regional economic disparities. Which of the following assumptions is implicit in the above statement?

A Entrepreneurs in smaller towns lack access to sufficient private funding sources.

B Job creation and regional development are independent of startup growth.

C Startups in metro cities are less likely to succeed than those in smaller towns.

D Economic disparities cannot be reduced even with government intervention.

E Private investors prefer investing in government-backed startups only.

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