A limiting factor is a constraint or obstacle that prevents something from being achieved to its full potential. In other words, it's an element that holds back progress or hinders development. The term can be used in various contexts such as economics, biology, psychology and project management among others. For instance, in agriculture, the availability of water may be a limiting factor for crop growth while in business, lack of funding could be a limiting factor to expansion plans. In essence, identifying and addressing the limiting factors is crucial in achieving success or progress towards a goal.