Given below are two statements: One is labelled as Assertion (A) and the other is labelled as Reason (R).

​Assertion (A): Entrepreneurship has emerged as a focal point of policy in the majority of countries.
​Reason (R): Entrepreneurship contributes in job generation, innovation and promotes social cohesion.

In the light of the above statements, choose the most appropriate answer from the options given below:​

Correct option is A

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

Entrepreneurship has gained global attention and become a policy priority in both developed and developing economies. Governments now recognize that fostering entrepreneurship leads to economic dynamism, increased employment opportunities, and a more resilient economy. Hence, Assertion (A) is correct.

Reason (R) offers a valid and direct explanation for this policy focus. Entrepreneurship is widely acknowledged to generate employment, especially in the micro, small, and medium enterprise (MSME) sector. It also acts as a driver of innovation, bringing new products and technologies to market. Furthermore, by empowering different social groups—such as women, minorities, and rural communities—it enhances social inclusion and cohesion. Thus, Reason (R) correctly explains why entrepreneurship is a focal point of policy.

Information Booster:

Entrepreneurship plays a crucial role in driving economic growth by creating new jobs, especially in developing economies where formal employment opportunities may be limited. It encourages innovation by introducing new products, services, and technologies that improve market competitiveness. Moreover, entrepreneurship helps in integrating diverse social groups, such as women, youth, and rural populations, into the economic mainstream, thereby strengthening social cohesion. Many governments now prioritize entrepreneurship in their policy frameworks to foster inclusive and sustainable development. Initiatives like start-up incubators, funding support, ease of doing business reforms, and entrepreneurship education programs are common strategies adopted to promote entrepreneurial ecosystems. Globally, countries recognize that encouraging entrepreneurship boosts economic resilience and helps address issues like unemployment, income inequality, and regional disparities.