Outline four factors that may discourage the growth of entrepreneurship in a country. (4 marks)June/July 2020

Entrepreneurship is the process of starting and running a business, and it is an important contributor to economic growth and job creation. However, there are various factors that can discourage the growth of entrepreneurship in a country, including:

1. Lack of access to capital: Entrepreneurs often need access to capital, such as loans or investments, to start and grow their businesses. If access to capital is limited or unavailable, it can be difficult for entrepreneurs to get their businesses off the ground.
2. Complex regulations: A complex and burdensome regulatory environment can be a deterrent to entrepreneurship. If the process of starting and running a business is overly complicated and time-consuming, it may discourage entrepreneurs from pursuing their ideas.
3. Poor infrastructure: Poor infrastructure, such as inadequate transportation systems, can make it difficult for entrepreneurs to get their products to market or to access the resources they need to operate their businesses.
4. Lack of education and training: Entrepreneurs often need specialized skills and knowledge to succeed. If education and training opportunities are limited or not aligned with the needs of the business community, it can be difficult for entrepreneurs to gain the skills they need to succeed.
5. Economic instability: Economic instability, such as high levels of inflation or a weak currency, can make it difficult for entrepreneurs to plan for the future and to predict the success of their businesses. This uncertainty can discourage entrepreneurship.