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Table 2 Rotated component loading matrix of potential constraints of youth entrepreneurship

From: Constraints of youth entrepreneurs in Ethiopia

Factor Name of newly extracted dimensions (factors) Variables Factor loading
Factor 1 Limited access to finance High collateral requirement from banks and other lending institutions .823
Lack of adequate loan amount .757
High interest rate charged by financial institutions .754
Lack of awareness of financing possibilities .733
Lack of adequacy of micro lending or seed funding institutions .652
Factor 2 Limited access to marketing Inadequate demand for the product/services .866
Lack of adequate input supply .811
Inadequate operation space and selling outlet .771
Lack of market information .690
Factor 3 Limited access to information and infrastructure Lack of knowledge about available business support services .786
Inadequate of access to physical infrastructure .774
Lack of market information access .690
Factor 4 Limited access to entrepreneurship training and education Lack of good school environments to introduce youth to the concept of entrepreneurship .872
Lack of linkages between educational institutions and the business community .846
Lack of trained/educated teachers .841
Inadequate curricula and study programs .767
Factor 5 Unfavorable government policy Lack of training .790
Too many and complex rules and regulations .745
Complex borrowing procedures .649
Lack facility of business connections (business contact, suppliers and network) .647
Lack of business contacts (networks) with others .583
Factor 6 Limited access to business assistance and support Lack of tailor-made business skill training for young people .864
Lack of counselor and adequate support agencies. .817
Inadequate business support services for youth entrepreneurs .672
Lack of exchange of experiences, ideas, forums, and meeting between young entrepreneurs .601
Factor 7 Limited social support Youth entrepreneur’s product/service is not accepted by society .826
Gender inequalities .791
Age discrimination by suppliers or customers .688
Factor 8 Unfavorable administrative Excessive administrative and bureaucratic burdens .884
Inefficient and discretionary tax subsidies for youth entrepreneurs .850
Factor 9 Weak institutional linkage High Stiff competition .832
Weak linkage between MSE’s and Government institutions .577
Complexity in business registration and licensing .501
  1. Source: Survey result 2018