barrier to entry

A 'barrier to entry' refers to obstacles that make it challenging for new firms to enter and compete in an industry or market.

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Definition

C1Economics

(technical)Obstacles that make it difficult for new competitors to enter an industry or market.

Example

  • High start-up costs are a common barrier to entry in the technology sector.

C1Business

(technical)Factors that prevent new firms from competing effectively with established companies.

Example

  • Strict government regulations can act as a barrier to entry for new businesses.