Question

State with reasons whether the following statements are true or False.

Small business industry gets finance easily at low interest rate.

Answer 1

Small business industry gets finance easily at low interest rate- False

Explanation:
Small businesses have always faced the problem of inadequate finance and credit. This is partly because of the scarcity of capital available with the entrepreneurs in the sector and partly due to the lack of assets that can be offered as collateral/mortgage to secure bank loans. As a result, these businesses have to rely on local financial resources or moneylenders who charge high rate of interest.