EXPLAIN two barriers to entry for a new business

1 answer:

3 0

One boundary could be competition. Another could be financial problems.
How competition could be a boundary is that, some organizations can be bias. Like in the past, if you moved cargo onto a train station and pay for that, The more you do it, the less you'd have to pay. So, that would be more helpful to the bigger businesses who ship a lot, and unhelpful to small businesses who have to pay more then the big businesses. A way financial problems could be a barrier is obvious. In the past, farmers did a process of how to pay off their loans and get a bit more money. They would Loan, Buy, Plant, Sell. And then they would pay off their loan, and have a bit of extra money in their pocket. But, its harder now. Financial problems are easy to come to. You need to make a business to make money, so you would have to have a successful business. That's why smaller, newer businesses struggle less then big and old businesses. I hope this helps. :)

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