How Does Limited Access to Capital Affect Entrepreneurs?
Access to capital is crucial for starting and scaling a business. Entrepreneurs often require funding to develop their products, hire staff, and market their services. Limited access to financing options such as loans, venture capital, and angel investments can stifle innovation and growth. Many entrepreneurs, especially those in underserved communities, struggle to secure the necessary funds due to lack of credit history, insufficient collateral, or lack of investor networks.