Question

What kinds of obstacles are poor citizens of developing countries likely to face when establishing businesses? Think of a time when you or someone you know tried to make some money through a business, a sale, or a job. Who helped you? Were there opportunities available for you? Based on your own experience, discuss the obstacles people in developing nations might encounter when trying to start their own business.

Answer 1

There are many obstacles for citizens in the developing nations when they start a business.
1.Inability to access credit facilities. This limits the extend of business growth as it cannot expand for lack of funding.
2.The poor national economy has made many people languish in poverty due to unemployment. With unemployment, the purchasing power of the populations is very small, and no business can thrive in such an environment.
3. Poor road network makes transportation of goods and services rather difficult, so business is greatly hampered and disadvantaged.
4. Inflation is also a problem for such businesses as it contributes to stagnation and uncertainty of daily cash flow.