Economics · MSME Development
Which of the following points reflects a core conceptual difference between traditional subsidy-driven approaches and modern developmental approaches to MSME support?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
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- 1Traditional approaches lean heavily on financial handouts, whereas developmental models prioritize capacity building, technology integration, and long-term competitiveness enhancement.✓
- 2Modern developmental interventions are legally restricted exclusively to luxury urban enterprises.
- 3Traditional assistance guarantees permanent structural profitability without business risks.
- 4Modern developmental approaches structurally discourage any cross-border export activities.
Correct answer
Traditional approaches lean heavily on financial handouts, whereas developmental models prioritize capacity building, technology integration, and long-term competitiveness enhancement.
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