Factors:

• Market size: - includes competition which affects demand of SMEs products and services
• Government: - relates to government regulations and policy such as barriers affecting SMEs
etc.
• Finance or Capital: - relates to lack of sufficient finance that would sustain the business
operations, that would help it buy machinery, build good infrastructure, pay rentals, lack of
access to credit facilities
• Accessibility of Market: - relates to location, are SMEs is easily penetrable by customers
• Economic Inflation: - an increase in prices of goods and services may affect the selling
activities of SMEs.
• Technical & Working Conditions: - they may affect business activities especially if they are
considered as not being technologically and health hazardous