Collapse of industries in case of stiff competition.
Low productivity due to use of poor technology as firms are unable to purchase machines.
Inability to purchase raw materials. Firms we low capital injection may not be able to purchase important input of production such as raw materials.
Lack of skilled labou.firms with low capital supply may not be able to hire trained and skilled personnel.
Poor working conditions. Industries with financial difficulties may not be able to improve the welfare of worker. It may find it difficult to motivate workers or even increasing the salaries or training them.
Edwinnyongesa8 answered the question on April 23, 2018 at 12:25
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