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Barriers to Entry - Explained

What is a Barriers to Entry?

Written by Jason Gordon

Updated at March 10th, 2022

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Table of Contents

What are Barriers to Entry?

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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