(a) Factors which encourage entrepreneurs to adopt division of labour are:
(i) Division of labour makes it possible for more workers to be employed. This leads to an increase in output.
(ii) Time is saved in division of labour because no time is lost in moving from one stage of production to the other.
(iii) Division of labour makes the use of machine possible at each stage of production. This leads to better and increased production.
(iv) Specialists handle various aspects of production in division of labour. This leads to innovations and sometimes, inventions.
(v) Since each worker on the production line does only one aspect of the production process, the worker experiences less fatigue.
(vi) In division of labour, one person is responsible for an aspect of production on which he concentrates his efforts and skill. With time, the individual's skill improves
(vii) With the use of machinery, various type of technology are developed to further facilitate production.
(b) Factors.that are capable of limiting the practice of division of labour are:
(i) The level of technology sets a limit to the extent of specialization. New technological break through may allow further specialization.
(ii) The nature of the product may not give room for division of labour e.g barbing, hairdressing and driving.
(iii) In the field of Creative art, division of labour is limited because, individual talent is all important and works cannot be mass-produced.
(iv) A small market discourages mass production and hence, division of labour. If the market is large enough to absorb sizable quantities of the product, it will encourage division of labour.
(v) Mass production requires factor inputs in suitable quantities and qualities. The extent to which these factors are available deter-mine the degree of specialization in the industry.