- Financial limitations – these include financial resources, under utilization of resources, poor allocation of financial resources to the business activities, poor management of the operating capital, low profit margin etc
- Limited knowledge of production and technology – this is due to lack of money to acquire appropriate technology, lack of technical skills by the staff, lack of access to technological information and source of technical assistance and use of labour intensive technology
- Unsupportive policies and regulations – there are policies and regulations that have been put in place by the government and other institutions. The problem is that most of them are unsupportive and there is a big discrepancy between policy and practice
- Weakness in entrepreneurial skills and managerial functions g. in planning, controlling, organizing, co-ordinating etc. poor decision making skills, poor experience in business, poor networking (establishment of limits).
- Inaccessibility to markets – this is due to stiff competition, limited marketing managing capabilities limited resources to support the marketing strategy and lack of exposure to information on new products and the market opportunities.
- Inaccessibility to information – this is lack of general information regarding sources of financing, technology, manufacturing, market, government grants, government incentives, micro-finance operations and other strategies for promoting small scale entrepreneur.