Barriers to Entrepreneurship in Developing Countries

Entrepreneurship notes In order to have a better standard of living, Businesses produce a better variety of products with lower production costs than. This gives consumers the opportunity to purchase quality products at low prices, thereby improving their livelihoods. Independence Entrepreneurship ensures the domestic production of legal goods. This reduces the country's dependence on foreign products. Barriers to the Development of Entrepreneurship in Developing Countries 1. Money is not enough. Many entrepreneurs may not have enough capital to build or expand their business. In addition, cannot get a loan because they do not have the resources to borrow. 2. Lack of knowledge/teaching about profitable business. Some 4,444 entrepreneurs have little or no work experience. In this case, even if they have money, they cannot invest in a business they do not know. 3. Administrative and business restrictions. Many have limited ability to identify profitable business opportunities and uncover the resources needed to build a successful business. Even when starting a business, entrepreneurs have limited skills to manage their profits. 4. Underdeveloped infrastructure. Connectivity is often poor, and in some areas electricity is unreliable and other infrastructure issues. This makes it expensive to do business. 5. Excessive corruption. Many entrepreneurs will be discouraged from starting businesses because of the poor performance of workers. In addition, of the employees are not profitable like in many businesses due to corruption. This hinders the progress of the business. 6. Market scarcity for certain products or services. In general, there is not enough market for many goods or services because many people are poor. This affected traders. It also limits the ability of the existing 4,444 businesses to grow. 7. Strict policies, rules and regulations. In some cases, strict government regulations (quality standards, licensing, etc.) can hinder business development. Good standards to protect entrepreneurs who cannot meet quality standards by starting or closing a business. 8. Unfavorable economic environment. Developing countries like Uganda suffer from high taxes, inflation, high oil prices etc. characterized by. As these increase the cost of doing business, it has become a problem for the development of business. The Role/Function of the Entrepreneur in Business Development 1. Business Strategy: The entrepreneur develops a strategy for business opportunities and implements the necessary steps to turn an idea into a successful business venture.

2. Introduction of the business: This includes research into the possibility of determining the benefits of the business; identification of qualified members; Choose a location for business and start all other necessary work like registration and so on. 3. Considering the risks and risks of the business Certainty: The entrepreneur assumes the risk of the business and sees the future of losses that may occur due to unforeseen circumstances. May insure the business against certain risks to minimize business losses in the event of bad luck.