• Inadequate capital: Business enterprises, be it private or pi enterprises are usually faced inadequate capital which makes it difficult for them to expand their operations.

  • Inadequate infrastructural facility: Infrastructural facilities like good road, electricity, pipe borne water and telephones services are usually gross inadequate and this make business operation very tough and difficult.

  • Inadequate skilled personnel: Most of the skilled personnel required to op or manage business enterprises are also inadequate. This results in low output and poor quality of products.

  • Shortage of raw materials: Most of the raw materials needed by business enterprises to operate are in short supply. This has either forced some of enterprises to operate at low capacity utilization or even fold up completely

  • Low patronage: Goods and services provided by some business enterprises encounter low patronage partly bees of low standard of goods and services provided and partly because consumer’s preference for foreign goods

  • Political instability: Most business enterprises find it difficult to grow due to political instability such as coups, strikes, civil war and communal crisis

  • Low technological development: As a result four low level of technology, most business enterprises have to rely crude mode of production which lead output of goods and services,

  • level of corruption: Business enterprises be it private or public, are characterized by high level of corruption. Directors embezzle company’s money and usually leads to the closure or liquidation of most companies,

  • Inefficient management: Most of the business enterprises are managed by unqualified and incompetent personnel this leads to the failure of many enterprises.

  • Government policies: Certain eminent policies that are in place do encourage the growth of business enterprises. Government policies like high ban on importation of essential raw materials and high import duties discourage the growth and survival of enterprises.

  • Problem of smuggling: The activities of smugglers whose duties are to bring in banned goods through illegal means have forced most business enterprises to fold

  • High operating cost: In many developing I: entries like Nigeria, business enterprises acre to provide their raw material, water and generate their source of power.
  • With these, there will be high cost of operation which will lead to high cost of their products.
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