- Its characterized by risk and uncertainty or there is no guarantee of success or failure
- Lack of wealth and investment if there is failure of such a business especially at the start of stage
- There is long hours and hard work is involved especially at the start up stage
- It may lead to low quality of life if not successful
- There is difficulty in decision making as it is hard to establish a clear reporting structure in a small business and it’s expensive to acquire expatriate advice.
- There may be discouragement or frustration which may cause loss of direction.