During an industry's embryonic phase, capital needs may surpass resources and capabilities.

Question

Quizplus · Accepted Answer

During the embryonic phase, an industry is just starting up and is characterized by high uncertainty and limited resources. Capital needs are often high because the industry is still developing infrastructure, building supply chains, and investing in research and development. However, resources and capabilities are often limited at this stage, because the industry has not yet had time to develop the skills, knowledge, and networks needed for sustained success.

During an Industry's Embryonic Phase, Capital Needs May Surpass Resources