Why was it difficult to build new businesses in the South?

There were not many banks to finance businesses

Explanation:

The reason why it is difficult to build a business in the south is because of the Civil war that occurred between 1861 to 1865. Before the civil war in 1861, southerners were mainly an agricultural state and highly dependent on the export of commodities to the world market. After the civil war, the southerners were left with nothing which makes life difficult for them to build new business and also there were no many banks to finance their businesses.