1. Lack of capital: The South was devastated by the Civil War, and much of its infrastructure was destroyed. This made it difficult for businesses to obtain the capital they needed to rebuild and expand. In contrast, the North had a much stronger economy and was able to provide businesses with the financial resources they needed to grow.
2. Lack of skilled labor: Another reason why industry failed in the South was the lack of skilled labor. Many of the South's white workers had been killed or injured during the war, and many of the black workers who had been freed from slavery lacked the skills necessary to work in factories. In contrast, the North had a large pool of skilled labor, which made it more attractive to businesses.