Barriers to Entry - Explained
What is a Barriers to Entry?
Written by J. Mance Gordon
Updated at April 21st, 2024
- Marketing, Advertising, Sales & PR
- Accounting, Taxation, and Reporting
- Professionalism & Career Development
-
Law, Transactions, & Risk Management
Government, Legal System, Administrative Law, & Constitutional Law Legal Disputes - Civil & Criminal Law Agency Law HR, Employment, Labor, & Discrimination Business Entities, Corporate Governance & Ownership Business Transactions, Antitrust, & Securities Law Real Estate, Personal, & Intellectual Property Commercial Law: Contract, Payments, Security Interests, & Bankruptcy Consumer Protection Insurance & Risk Management Immigration Law Environmental Protection Law Inheritance, Estates, and Trusts
- Business Management & Operations
- Economics, Finance, & Analytics
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.
Back to: STRATEGY, ENTREPRENEURSHIP, & INNOVATION