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Lacking Feedback:–

In new business when feed back or

communication is not existing between
the various parties of a unit than there
will be a hurdle in entrepreneurship.
Absence of Internal control: –
Control over the business comes from
the internal side of the business
specially for a new entrepreneur. So
less internal control always be a
Team Building:–
A new business depends on the
coordination and team efforts
.lacking with team building always
be a problem for entrepreneur.
Career risk:—
loss of employment security can be
a problem for starting a new
business because if entrepreneur
don’t get success than he also
loosing an employment opportunity
for himself.
The external causes are beyond the
control of the industry & usually effect
the industry group as a whole.
Non-availability of raw-material

Unfavorable change in govt.

Industrial strikes, etc.

Irregular supply of vital inputs such

as power, water, etc

Fiscal irregularities
The internal causes are within the
control of the industry.
Shortage of working capital
Lack of Industry Experience
Poor Business Planning
Lack of Entrepreneurial Skill
Extending too much credit and poor
credit control
Lack of control on key areas like
management, finance, inventory,

An improper demand forecast for the

products to be sold.

Wrong choice of technology, wrong

location etc.

Poor pricing strategies

Inability to reach decisions and act on

Poor personnel relations

Poor relations with suppliers

Lack of quality processes

Poor customer relations

Failure to anticipate market trends

Failure to promote and maintain a

favorable public image