Limited local markets for goods and services


  • Shrinking local market
  • Underuse of local market
  • Disorganized local marketing
  • Inefficient product markets

Nature

Local communities need to expand markets for both goods and services; however such expansion is impeded by the need for capital investment and high transport costs, so that prospects for raising incomes are small. Rural products are usually sold to visiting middlemen, or occasionally to merchants from outside. In order to benefit from expanding economies, production of goods needs to be in greater quantity and of a quality suitable for larger area markets. Retailers often have to move from smaller, local markets to larger, regional ones in order to continue their business.


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