There are a couple of factors:
Fear - People tend to be scared of the challenges ahead when they start a small business which causes them to panic and make irrational decisions.
Lack of confidence - If a businessman does not believe in himself, then his employees or worse off his customer will have no faith in him.
Money - Before starting a business, one should have roughly 90 percent of the capital required to allow that business to stand and a supposed 5 percent of the required capital for miscellaneous or emergency needs.
Lack of knowledge - If you start a business that you have not researched on properly or have no knowledge of the subject, there will be very little no chance of survival, so knowledge is quite vital.
Patience - One has got to have this virtue, otherwise if you give up easily you may never know how far you would get if you stayed on.
Discipline - Lack of this character could make one loose both employees and customers. Because, if you want your business to succeed you have to keep your word and walk the talk and you will get this right back.
These are many other factors could affect a small business.
Business planning is one of the important thing you may not even think would affect a small business loan rate is a business plan. However, the lack of a solid and comprehensive business plan may make the world of difference when you apply for a loan, particularly if you are a new business. A business plan shows that you are serious about starting and maintaining a business venture and seeing a future with growth. A business plan also gives financial institutions a good indication of whether they are making a wise investment.
role of government in the promotion of small and medium scale
factors affecting distribution would be things such as distance, location, nature of the good and seasonality. Be careful not to mix this up with factors affecting the accessibility of the good to consumers.
Factors affeacting entrepreneur
hormones
labour
Environmental factors that affect small businesses include governing bodies and competitors. When the government makes regulations it can hurt small businesses trying that are trying to survive.
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A high unemployment rate is a social problem that affects businesses. With fewer people working, consumers can't purchase a businesses' products.
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