Question

Entrepreneurs must be aware of the barriers to gain entry into the industry. Explain any two barriers to becoming an entrepreneur.

Hint:

Remember: Overcoming barriers like lack of funds or skills requires planning, training, and smart networking.

Answer 1

Starting a new business involves facing several challenges that can discourage potential entrepreneurs.
Two common barriers are explained below:
1) Lack of Capital: Many new entrepreneurs struggle to arrange sufficient funds to start and run their business.
Banks and investors often hesitate to lend money to first-time entrepreneurs without a proven track record.
Limited access to financial support makes it difficult to purchase equipment, hire staff, or market the product effectively.
2) Lack of Technical and Managerial Skills: Many aspiring entrepreneurs may have innovative ideas but lack the technical know-how to implement them successfully.
They may also struggle with essential business management skills such as planning, marketing, and resource management.
This lack of expertise can lead to poor decisions, inefficiency, and eventually business failure.
Being aware of these barriers helps aspiring entrepreneurs prepare better, seek proper training, and plan for funding in advance.