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

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