Question

Explain ‘barriers to entrepreneurship‘.​

Answer 1

Answer:

Hope this helps you

Explanation:

Lack of business education, Lack of motivation from government, corruption in the administration, high cost of production, etc. are the other environmental barriers that inhibit the growth of entrepreneurship in underdeveloped countries.

Answer 2

ANSWER :

Entrepreneurship can be defined as a systematic, purposeful and creative activity of identifying a need, mobilizing the resources and organizing the production with a view to delivering value to the customers, returns for the investors and profits for the self accordance with uncertainties as well as risks associated with the business. The object of entrepreneurship is lawful business. It is creative as it involves creation of value as well as innovation.

❖ Some barriers to entrepreneurship are explained below :-

• [1] Non-availability of required finance : A major barrier to entrepreneurship is the non-availability of required capital finance. To set up a business, one needs capital finance as well as raw materials. Sometimes, the capital for setting up the new venture is not accessible for the entrepreneur. Also shortfall in the availability of raw materials in the desired quality and quantity becomes a barrier.

• [2] Less market experience : A common barrier to entrepreneurship is one's less experience about the market ans its need. One should not rush to set a business without having the essential and proper knowledge about the market environment. A person is said to be ready to take the entrepreneurial plunge when he has a relative amount market exposure and has the course to take market risk.

• [3] Lack of risk taking capacity : Lack of risk taking capacity acts as a major barrier in the entrepreneurship. To be a entrepreneur, one should have the capacity to take all kinds of risk related to the business and its environment. He should have a structured and organized approach towards the various elements of the business as well as should risks rather than averting them.

• [4] No planning and strategy in place : Another major barrier to entrepreneurship is lack of proper planning and strategy in place. One should have long term as well as short term vision and plan in mind to set up as business. Proper strategic plan, target market, finances, human resources etc. are very essential factors to make a business successful.

• [5] Lack of practical knowledge : To be a entrepreneur, educational knowledge is not enough. Along with proper educational knowledge, one should have a good knowledge in practical field. Lack of practical knowledge becomes a barrier to entrepreneurship as a entrepreneur needs to perform his work practically.