Factors that hinder entrepreneurial activities

Factors that hinder entrepreneurial activities

• Unfavorable government policies which tend to discourage establishment of businesses e.g. high taxation
• Poor infrastructure which discourage smooth running of businesses
• Lack of adequate knowledge and skills to start and manage businesses
• Lack of market which discourages establishment of new businesses / continuation of the existing ones
• Inadequate resources to start / run businesses smoothly
• Stiff competition with cheap and higher quality imports making demand for local goods to decline hence closure of local businesses
• Political instability creating a poor environment for businesses to start / thrive
• Unfavorable culture – some values and norms discourage establishment of businesses / consumption