I think one of the major challeneges to small businesses is a lack of access to support and management advice.
Everyone would rather hire a cheap worker or two, and try to deal with all the issues mentioned above (capital, expense control etc.) by themselves.
Business owners are afraid to involve anyone else in management because they think someone will steal their business ideas (or other reasons only they know).
Businesses get stuck in being small because they spend 100% all their effort in operations and 0% on growth. That's why small stays small.
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