​Which of the following are construed for government intervention to support entrepreneurship and small firms?
A. Stimulate demand and new venture creation in the emerging sectors
B. Decentralised asset ownership and people participation
C. Help firms to adopt new technology to avoid market failure
D. Supporting women participation in business and high-tech firms
E. Export promotion and currency stabilisation

Choose the most appropriate answer from the options given below:​

Correct option is C

Government intervention in the realm of entrepreneurship and small-scale industry (SSI) is guided by several policy objectives, especially to address market failures, promote inclusivity, and stimulate innovation. Among these:

• (A) Stimulate demand and new venture creation in emerging sectors is a proactive government approach, especially through fiscal incentives, subsidies, and startup incubation programs in priority areas like renewable energy, biotechnology, and fintech.

• (C) Help firms to adopt new technology to avoid market failure is a classical rationale for government intervention. Market failures often occur when small firms lack resources or information to adopt technologies that increase productivity. Government schemes like credit-linked technology subsidies or R&D incentives target this gap.

• (D) Supporting women participation in business and high-tech firms is both a social and economic objective. Governments actively promote inclusive entrepreneurship through women-centric financing schemes, training programs, and special economic zones.

These align with major objectives such as employment generation, regional development, innovation support, and inclusive growth, thereby directly supporting entrepreneurship and small firms.

Information Booster:

• Emerging sector support (A) is crucial for national competitiveness and future job creation. Government incubators, Startup India initiatives, and innovation challenges focus on this.

• Technology adoption (C) solves productivity constraints in MSMEs. Example: India’s Credit Linked Capital Subsidy Scheme (CLCSS) helps SMEs modernize.

• Women in business (D) are underrepresented, and government intervention helps balance social equity and business diversity. Schemes like Stand-Up India and Mahila Coir Yojana support this.

These interventions are aligned with global best practices in promoting entrepreneurial ecosystems, particularly in developing economies.

Additional Knowledge:

(B) Decentralised asset ownership and people participation:
While this is important in inclusive governance or rural development, it is not a direct rationale for entrepreneurship-specific government intervention. It is more related to social equity or land reforms than business support policies.

(E) Export promotion and currency stabilisation:
These are macro-economic objectives, largely linked to trade policy and monetary policy. They are not specifically targeted to support entrepreneurship or small businesses, although they may have indirect effects.