There are many ways that a business can be constrained in growth:

  • Regulation

Growing businesses winning significant market share may come to the attention of the competition authorities e.g. Google and Amazon. This makes it much harder for small businesses to get their attention unless they have created something that’s trending right now.

  • Finance

Many small businesses run up against finance constraints including access to loans from commercial banks and also the risks of raising fresh equity in capital markets.

  • Competition

In contestable markets there is always the threat of entry from rival firms. To prevent this you want to make sure you are staying active on Social Media and keeping your website up to date. This will keep your SEO at a good rating and help you win the battle for front page on Google.

  • Size of the Market

Businesses achieving success in niche markets may find a limit on scale. Others successfully leverage a brand to enter new markets. New and emerging technologies can be a major barrier to the continued growth and profits of established firms.

  • Growth of the Market

Business growth can be held back by the recession or prolonged slowdown in demand. This can negatively affect a business and pull it down.

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