Question

Which of the following is a major challenge faced by rural enterprises in India?

• A. High availability of skilled labor
• B. Poor access to finance and credit
• C. Excessive competition from urban businesses
• D. High infrastructure development in rural areas

Answer 1

Answer:

B. Poor access to finance and credit

Rural enterprises often face challenges in securing affordable credit and financial services due to limited banking infrastructure, inadequate collateral, and lack of formal documentation, which restrict their growth and sustainability.