What are Barriers to Entry?

Barrier to entry is a term used in economics throwing light on what challenges a competitor would encounter when entering a specific sector or industry. 

Examples of general barriers to entry include: 

• high capital asset costs,
• licensing or regulatory approvals,
• exclusive tax-based privileges offered to current organizations, 
• patents or other intellectual property rights, 
• brand awareness or image, 
• Customer Base (loyal customers), 
• etc.

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