The Barriers to Entrepreneurship? Entrepreneurial growth is very slow in underdeveloped and developing countries. This is due to the presence of several factors. Gunnar Myrdal said that Asian societies lack entrepreneurship, not because they lack money or raw materials, but because of their attitude. These barriers are classified into three types in entrepreneurship. Let us throw light on this.
- Environmental Barrier
- Personal Barrier
- Social Barrier
- Environmental Barrier.
This entrepreneurship directly contributes to job creation, and innovation is now accepted knowledge. This is the case, there are barriers to entrepreneurship and barriers to economic development. The below is the list of 15 Ways Barriers to Entrepreneurship. Which can be considered.
15 Ways for The Barriers to Entrepreneurship?
#1. Lack of Fund
#2. Lack of Skilled Labour
#3. Lack of Good Machinery
#4. Non-Availability of Raw Material
#5. Lack of Infrastructure
#6. Other Environmental Barriers
#7. Personal Barrier
#8. Lack of Motivation
#9. Unwillingness to Invest Money
#10. Lack of Patience
#11. Lack of Confidence
#12. Inability to Dream
#13. Social Barriers
#14. Custom and Tradition of People
#15. Low Status
#1. Lack of Fund:
There are various methods by which an entrepreneur arranges for funds, e.g., own savings, borrowings from friends and relatives, banks, and other financial institutions. Many people do not enter into entrepreneurial activities because of a lack of funds.
#2. Lack of Skilled Labour:
This is the most important resource in any organization. Unfortunately, desired manpower may not be available in an organization. This is either due to the lack of skilled labor or due to a lack of committed or loyal employees in the organization.
#3. Lack of Good Machinery:
Good machines are required for the production of goods, because of rapid technological developments, machines become obsolete very soon. Small entrepreneurs find it difficult to get a large amount of cash for installing modern machinery.
#4. Non-Availability of Raw Material:
Non-availability of raw materials especially during peak season is one of the obstacles inhibiting entrepreneurship. This leads to competition for raw materials.
#5. Lack of Infrastructure:
Lack of infrastructure facilities is a major barrier to the growth of entrepreneurship, particularly in underdeveloped and developing economies. The infrastructural facilities include land and building, adequate and cheap power, proper transportation, water, and drainage facilities, etc.
#6. Other Environmental Barriers:
Lack of business education, Lack of motivation from the government, corruption in the administration, high cost of production, etc. are the other environmental barriers that inhibit the growth of entrepreneurship in underdeveloped countries.
#7. Personal Barrier
The Personal Barriers relate to the factors that are personal to the sender and receiver and act as a hindrance in the communication process. These factors include life experiences, emotions, attitudes, behavior that hinders the ability of a person to communicate.
#8.Lack of Motivation:
When an individual starts a new venture, he is killed with enthusiasm and drive to achieve success. But when he faces the challenges of real business or bears the loss, or his ideas don’t work, he loses interest or motivation.
#9. Unwillingness to Invest Money:
Even though people have money, still they do not come to entrepreneurship. They are not willing to take the risk of investing money in business.
#10. Lack of Patience:
The desire to achieve success in the first attempt or to become rich very soon is the prime motivating factor of modern youth. When such dreams do not come true, they lose interest. This gradually drives to fail in business.
#11. Lack of Confidence:
Many people think that they lack what it takes to become an entrepreneur. They feel that they could not master all the skills. thus most people are reluctant to become entrepreneurs.
#12. Inability to Dream:
Entrepreneurs, who are short on vision or become satisfied with what they achieve, sometimes lose interest in further expansion/growth of a business.
#13. Social Barriers
The social attitude inhibits many people even from thinking of starting a business. Two important social barriers are as follows.
#14. Custom and Tradition of People:
Most people want a real job. Even parents who are entrepreneurs wouldn’t like their children to be entrepreneurs. thus lack of support from society and family hinders the growth of entrepreneurs.
#15. Low Status:
Society thinks that entrepreneurs are the people who exploit society. Thus the attitude of the society towards entrepreneurs is not positive.
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Business management expert and Leadership Consultant and Business Coach, who writes her blog, Jay’s Trends, focused on helping small business owners understand trends in Business management. Other posts by Jayprakash Prajapati»