Question

Which key factors impact whether budding entrepreneurs around the world can start and own a business

Answer 1

To successfully start and own a business, budding entrepreneurs need capital, which often comes from personal savings or loans, and investments from angel investors. Economic factors and public policies, including the business cycle, inflation, GDP, unemployment, and productivity, also critically influence business success.

Step-by-step explanation:

The key factors that impact whether budding entrepreneurs around the world can start and own a business are multifaceted and include the source of startup capital, the economic environment, and public policies.

For many small businesses, the original source of money is the business owner, who might cover the startup costs with personal savings or by borrowing funds. Angel investors and venture capitalists also play vital roles by providing capital in exchange for equity in the early developmental stages of a new company.

Other critical factors include a country's business cycle, its economic policies such as those affecting inflation and Gross Domestic Product (GDP), the level of unemployment, and measurements of productivity. Furthermore, investments in areas such as labor, human capital, physical capital, and technology significantly increase the chances of success for a business.

Answer 2

Step-by-step explanation:

There are several barriers to entry in a market that can hinder the creation of a new business, the ones that most impact new entrepreneurs are the financial, technical and structural barriers.

There is the configuration of a monopoly market where there is a single company that controls the market and resources, influencing prices and hindering new entrants.

There are also capital difficulties, where the cost of opening and maintaining a business makes it difficult for new entrepreneurs to enter the market in the long term in a competitive manner with larger companies, for example.

And there are also technical barriers, which can be understood as the lack of specific knowledge for a particular business operation.