Lack of Resources: Innovation requires investment in research and development, which can be a barrier for smaller businesses. Risk Aversion: Many businesses are afraid to take risks, fearing failure and its associated costs. Organizational Inertia: Established companies often have rigid structures and processes that stifle creativity. Resistance to Change: Employees and management may resist changes to existing processes and products. Short-term Focus: Businesses focused on short-term gains may neglect long-term innovation projects.