Government subsidy of 15-20% is provided to the small businesses for building capital assets.

Due to the global competition, small businesses find themselves lagging behind in technology. Since they don't have enough funds, they end up with no managers, and lack access to good quality raw materials. 

Using handloom directly impacted the productivity and competency of Chandra's business since the powerloom works 10 times faster than handloom. 

Due to outdated technology and inefficient labour, small businesses face the issue of capacity utilisation. 

Even after Sita hires middlemen for her marketing needs, they charge an exorbitant fee for doing so. This leads to a huge reduction in her revenues earned. 

When there is a shortage of funds, it will eventually lead to other challenges as mentioned.

Options B and C highlight the benefits of clusters. There is economies of scale in procuring raw material.

Access to credit through formal source is almost impossible for small businesses as they lack guarantee and creditworthiness. Whereas, informal sources charge a very high interest fee on credit. Either way, small businesses face challenge to access credit.

Small businesses are registered with the government by filling a simple form called as 'Udyog Aadhaar Memorandum' (UAM).

Water charges are exempted for 5 years or supplied at a 50% concessional rate.