Question

Given below are two statements : One is labelled as Assertion (A) and the other is labelled as Reason (R).
Assertion (A) : Bootstrapping entrepreneurship is one of the most adapted entrepreneurship in India.
Reasons (R) : Managing a business through one's own financial resources are the first and easy option available for the entrepreneur to start a business.
In the light of the above statements, choose the most appropriate answer from the options given below :

• A. Both (A) and (R) are correct and (R) is the correct explanation of (A)
• B. Both (A) and (R) are correct but (R) is NOT the correct explanation of (A)
• C. (A) is correct but (R) is not correct
• D. (A) is not correct but (R) is correct

Hint:

Bootstrapping = Self-funding. It is highly popular because it allows the entrepreneur to retain 100% ownership and control during the critical early stages.

Answer 1

The Correct Option is A

Step 1: Understanding the Concept:
Bootstrapping means starting a company with little capital, relying on personal savings and sweat equity to get the business off the ground.
Step 2: Detailed Explanation:
1. Analysis of Assertion (A): In India, a large number of startups and small-scale businesses begin without external venture capital or bank loans. They start small using self-funding. This makes the statement true.
2. Analysis of Reason (R): For most first-generation entrepreneurs, getting a bank loan or venture capital without a proven track record is difficult. Therefore, using their own savings is the most accessible and immediate path to starting a business. This statement is also true.
3. Establishing the Link: Because self-funding is the easiest and often the only available starting point (Reason), it naturally follows that this "bootstrapping" method is the most widely adapted one in the country (Assertion).
Step 3: Final Answer:
Both statements are correct and the Reason explains the Assertion.