The correct answer is option 4- None of the above.
All these conditions are suitable for entrepreneurship. In general, capitalist economy with its emphasis on individual achievement is more suitable for entrepreneurship. Lower rates of taxation on personal income, lower rates of interest and moderate inflation stimulate entrepreneurial activity. Moderately low external value of domestic currency or in other words, moderately lower exchange rates, stimulate import substituting and export promoting entrepreneurship. Well developed financial system, good infrastructure, helpful bureaucracy all these have a favorable impact on entrepreneurship.
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