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An entrepreneur chooses to make solar study lamps for a rural area. Demand exists but customers cannot pay upfront. Which initial model is most suitable?

Answer and explanation

Correct answer: A small pilot with instalment payments or community financing

Demand is not enough for a viable business if the payment method does not fit customers’ cash flow. A small pilot can test product use, repayment, maintenance, and real demand while instalments or community financing reduce the upfront burden. Large production without testing payment ability would increase financial risk.

Related tags

Rural EntrepreneurshipAffordabilityIntroduction To EntrepreneurshipEntrepreneurial Skills IArtificial IntelligenceClass 9 Mcq

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