How to Compete in a Business with a Minimum Entry Barrier?

Category: Business

Barriers to entry are the hindrances or obstacles that make it difficult for startups or businesses to enter the market. These barriers may include patents, technology challenges, government regulations, education, start-up costs, or licensing requirements. Barriers to entry are said to be an important consideration for entrepreneurs who are entering a market. Some barriers to entry actually exist due to government intervention and the rest of them happen naturally within a free market. It helps in protecting the integrity of an industry and also prevents new entrants from launching inferior products into the market. Every industry will have a specific set of barriers to entry which has to be dealt with by the startups.