Inadequate development of enterprises in developing countries

The indigenous enterprise sector in developing countries is typically represented by small-scale entrepreneurs such as small traders, people providing transport services, artisans and small manufacturers. Such small-scale ventures and very small micro-enterprises are believed to account for a high proportion of industrial and service activities and employment in most developing countries.

1. Undeveloped channels for commercial initiative
2. Economic underdevelopment

1. Lack of rural industrialization
2. Ineffectiveness of tradition-bound small business methods

1. Stagnated development of agricultural production
2. Government dominated jobs
3. Deterioration of staple food production

1. Unrelated pioneer institutions
2. Undeveloped financial markets in developing countries
3. Undeveloped business support
4. Trade barriers against developing countries
5. Short-range planning for long-term development
6. Restraint on development by transnational corporations
7. Nationalization of domestic enterprises
8. Insufficient use of natural resources
9. Insufficient enterprise capital
10. Instability of the commodities trade
11. Incapacity of developing countries to organize
12. Inappropriate education
13. Inadequate regulation of the restrictive business practices of state enterprises
14. Inadequate infrastructure
15. Inadequacy of the domestic market
16. Inadequacies of foreign consultants
17. Geographically disadvantaged countries
18. Foreign exchange reserve shortages
19. Deficient business leadership
20. Bias against private enterprise
21. Abuse of monopoly power of state-owned or state-controlled enterprises

1. Restrictions against small enterprise

1. Promoting interests of developing countries in world trade agreements