Question
How can the economic environment create negative influence for an entrepreneur?

Answer

The economic environment can create barriers for an entrepreneur because of the following reasons:
  1. The capital for setting up the new venture is not accessible for the entrepreneur.
  2. Non-availability of labour at reasonable cost.
  3. If the labour market is unreliable and is fraught with indiscipline and selfishness, it will also become a barrier for entrepreneurship.
  4. Shortfall in the availability of raw materials is the desired quality and quantity.
  5. Inadequate infrastructure to transport the raw material to the factory.
  6. Non-availability of easy access to the market for the finished goods.

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