Assertion: Entrepreneurship is very crucial for overall economic development of a nation.
Reasoning: The entrepreneurship besides providing self-employment to the entrepreneur is responsible to a great extent for creation and expansion of opportunities for the other two economic activities, that is, employment and profession.
Answer & explanation
Correct answer: option 1
The correct answer is option 1- Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.
Entrepreneurs lead the process of economic development via bringing about sectoral change. Entrepreneurs through their decisions to divest from the stale sectors and invest in green-field sectors bring about a virtual transformation of the economy from ‘underdeveloped’ to an ‘emerging’ and ‘developed’ status. Entrepreneurship besides providing self-employment to the entrepreneur is responsible to a great extent for creation and expansion of opportunities for the other two economic activities, that is, employment and profession.