Assertion: Entrepreneurship has a great impact on local communities.
Reasoning: That small-scale entrepreneurship enables such marginalized groups as women, SC, ST and OBC to pursue their economic dreams.

Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

The correct answer is option 1- Both Assertion (A) and reasoning (R) are correct and R is the correct explanation of A.

Impact on Local Communities: Entrepreneurship, in its natural habitat, that is, small business is a great leveler. The small-scale entrepreneurship enables such marginalised groups as women, SC, ST and OBC to pursue their economic dreams. As there are no entry barriers in terms of educational qualifications, entrepreneurship is an even more attractive career option for such marginalised groups. Agro-based rural industries and craft based cottage industries can really catapult local communities to socio-economic success stories. Local governments do their bit in developing these entrepreneurship clusters with a view to encouraging inter-firm collaboration and development of common facilities .