Limited market. The narrow domestic consumer market may not permit the effective operation of this strategy.

insufficient supply of entrepreneurs and management limits prospects of investment, leading to failure of the unbalanced growth strategy.

The limited domestic resource potential in developing countries create imbalances and uncertainties to stimulate economic growth.

Political instabilities too, have greatly affected the progress of the unbalanced growth programme.

Divergence between social and private aspirations, especially on profitable projects is yet another hindrance towards the implementation of the unbalanced growth strategy.

Wastage of resources is common, where certain sectors of the economy are prioritized which is often the state sector.