Additionally, there is a need for entrepreneurship to take root in the region for industrialization to be achieved. Entrepreneurs and investors should be ready and willing to improve their processes in order to produce more goods and services and enjoy economies of scale by increasing the size of their operations and making them efficient.
Transport and related infrastructure such as roads, ports, and railways should be developed to ensure there is adequate movement of raw materials, finished goods, and labor. Transport improves access to different regions and helps fuel the need for increased production.
The availability of funds in the form of capital is also an important aspect of industrialization. Financial institutions should ensure there is access to capital at suitable rates to entrepreneurs. Access to loans with competitive interest rates will likely attract entrepreneurs to engage in industry.
The availability of raw materials also serves as an important precondition for industrialization to occur. Locally sourced raw materials make the process cheaper for industrialists, which motivates them to engage in the process.
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