Barriers To Entrepreneurship
1. Why should we have some knowledge about barriers to entrepreneurship?
We should have some knowledge about barriers to entrepreneurship because of the following reasons.
- An understanding of the inhibiting factors or barriers will help prospective entrepreneurs to develop a strategy to overcome them.
- A systematic study of the barriers will lead to a proper understanding of the fields or areas in which they occur.
- Once the barriers are clearly identified, the society, government and other supporting agencies can develop effective programs to tackle the issues to create a conducive entrepreneurial climate.
- An insight into the barriers will lead to insight into the entrepreneur’s personality that is so essential in the process of entrepreneurship.
2. Give two examples of barriers arising out of social environment?
The following are the examples of barriers arising out of social environment.(Write any two).
- A society putting premium on safety and security in matters of securing a livelihood, such a value can become a strong social barrier to entrepreneurship.
- In some societies, the business is considered as a profession of lower hierarchy. Business people are considered inferior to office-goes, engineers, doctors etc. Such a social response to entrepreneurs can be a big hurdle in developing and nurturing entrepreneurs.
- A society denyiing access to self-esteem will be placing hurdles in the path of an entrepreneur.
- Social factors such as
- insistence on conformity
- an excessive protective attitude among children during their formative years
- discouragement to mobility
will all thwart the following essential values of entrepreneurship.
- innovative spirit
- sense of adventure.
3. how can the economic environment create barriers for an entrepreneur?
The economic environment can create barriers for an entrepreneur because of the following reasons.
- The capital for setting up the new venture is not accessible for the entrepreneur
- Non-availability of labour at reasonable cost.
- If the labour market is unreliable and and is fraught with undescipline and selfishness, it will also become a barrier for entrepreneurship.
- Shortfall in the availability of raw materials in the desired quality and quantity.
- Inadequate infrastructure to transport the raw material to the factory.
- Non-availability of easy access to the market for the finished goods.
4. Do you think there are cultural barriers to entrepreneurship in our society? Discuss with examples?
Yes. I agree that there are cultural barriers to entrepreneurship in our society.
This is evident from the fact that the cultural values in our society are bound by
- strong cultural taboos etc.
All these cultural hindrances to entrepreneurship may curb the entrepreneurial spirit.
For instance, in the past, some societies in India discouraged people from going abroad believing that crossing the sea was a cultural taboo.
Similarly certain field of work were considered unsuitable for people of certain culture.
One other example is that in certain cultures, where in taking loans for interest is forbidden, becomes a major barrier if the major sources of loans are interest charging banks.
Such strong cultural dictats can act as barriers to entrepreneurship.
5. Cite any two ways in which political environment can work against the interest of entrepreneurs?
The political environment can work against the interest of entrepreneurs in the following ways (You can choose any two of the following)
- A political environment that is characterised by instability and insecurity will discourage entrepreneurs.
- Political policies can retard the growth of entrepreneurial ventures in a country.
- Excessive interference in the form of controls, delays etc. from the government can discourage prospective entrepreneurs.
6. Briefly discuss the personal barriers to entrepreneurship.
The personal barriers to entrepreneurship can be classified into two types.
- Motivational : Once the venture starts functioning, the obstacles faced in the initial stages can make the entrepreneurs to lose their commitment and consequently their level of motivation dips. The entrepreneurs who lack toughness and perseverance often quit.
- Perceptional : Certain perception barriers cn hamper the progress of the entrepreneur. Lack of a clear vision and misunderstanding can result in faulty perception. If the entrepreneur demands everything to be clear and well-defined in order to develop a perception, it will lead to disappointment. As entrepreneur’s world is basically disorderly and ambiguous, the people who excessively depend on order will find it a barrier to entrepreneurship.