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Which of the following is an example of a barriers to entry that an entrepreneur could face? (1 point)

O the entrepreneur already owning another business
O obtaining proper licensing to start the business
O a possible economic downturn in the future
a past failed business by the entrepreneur

User Ashgromnies
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1 Answer

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22 votes

Final answer:

Barriers to entry for entrepreneurs include owning another business, obtaining proper licensing, economic downturns, and past failed businesses.

Step-by-step explanation:

Barriers to entry are the legal, technological, or market forces that discourage or prevent potential competitors from entering a market.

They can range from simple and easily surmountable factors such as the cost of renting retail space to more restrictive ones.

Examples of barriers to entry for entrepreneurs include:

The entrepreneur already owning another business: If the entrepreneur is already occupied with another business, it may be a barrier to entry for starting a new venture.

Obtaining proper licensing to start the business: If there are strict licensing requirements or regulations to start a specific business, it can act as a barrier to entry.

A possible economic downturn in the future: Economic downturns can create challenges for entrepreneurs and hinder their ability to enter certain markets.

A past failed business by the entrepreneur: Previous failures can make it difficult for an entrepreneur to secure funding or gain trust from investors, which can act as a barrier to entry.

User NicuVlad
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