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6 Factors that Limit the Growth of New Businesses

The growth and success of a business will depend on a number of factors, such as how well the market will respond to the products and services that are offered. It’s a common goal, but it’s elusive as not everyone is able to have it realized. That being said, the rest of this post will tackle some of the factors that can restrain business growth.

Overwhelmed businesswoman

1. Doing it Alone

Even if your business is small, you will not succeed doing it on your own. You need to have a pool of talent to fuel business growth. You have to find the right people to help you carry out business activities. Human capital will make it possible to overcome competition and improve customer satisfaction. In that case, professional services like can help you in formulating effective and efficient business strategies.

2. Failure to Expand

Growing customer base, improvement of productivity, and higher income – these are some of the examples of organic growth. Nonetheless, businesses should also focus on inorganic growth, which may include merging with another company for the purpose of expansion. Failure to do so can limit growth. Therefore, if you want the business to be bigger, consider partnering with others in order to widen your reach.

3. Lack of Differentiation

In one article from Forbes, it has been noted that the absence of real differentiation is a reason why 8 out of 10 businesses fail. If the business does not offer a unique value proposition, what difference does it make from its competitors? When you are just the same as all others, it will be hard to establish your own market. This makes it vital to have a unique offering.

Uninspiring leader

4. Lack of Leadership

Leadership has a great impact on business success. This makes it important to have the essential leadership attributes, such as charisma, optimism, honesty, and communication skills, among other things. A leader needs to have a vision and a strategy to succeed. The absence of effective leadership will inevitably make an organization fail.

5. Nature of the Market

There are also external factors that will limit business success, such as the demand from the market. If there is low or no demand at all, what will a business do with its supply? The business needs to be intelligent enough to increase the demand, such as through aggressive marketing and effective pricing strategies.

6. Financial Constraints

It’s also undeniable that money is an important resource for any business. Therefore, when there are financial constraints, success can also be limited. Having no money can hinder an organization in its pursuits, such as with its product development and marketing initiatives. Companies must find a way to continuously fund its operations.


The combination of the factors mentioned above can greatly limit the success of your business. Luckily, there is always something that can be done to minimize their negative impacts. It all depends on how proactive the business is in responding to uncertainties.

About author

Ivan Widjaya
Ivan Widjaya 2882 posts

Ivan Widjaya is the Owner/Editor of, as well as several other blogs. He is a business blogger, web publisher and content marketer for SMEs.

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