Chapter
3:
Barriers
to
Entrepreneurship


After
this
session,
student
should
be
able
to

o Identify
barriers
to
entrepreneurship

o Learn
the
qualities
to
overcome
these
barriers





Identifying
barriers
to
entrepreneurship

1. Lack
of
confidence
–
the
perceived
lack
of
skills
(i.e.
educational
ability).

2. Lack
of
motivation
‐


3. Family
responsibility
–
business
ownership
is
riskier
financially
than
employment.

4. Entrepreneurship
is
generally
new
–
we
are
used
to
working
for
someone
else.


5. Accessing
resources
–
finance
and
labor;
this
includes
risk
aversion
of
lenders,
failure

rates
and
lack
of
business
planning.


6. Accessing
markets



What
encourages
entrepreneurship?

1. Migration
–
access
to
resources
and
informal
support
networks

2. Lack
of
opportunity
to
advance
or
underemployment
in
the
working
environment



Do
Case
Study:
Alternative
Publishing
Ltd
(Part
A)
on
page
74
–
77)

Question:
Should
Majid
and
Suhail
start
the
business?
Consider
the
advantages
and

disadvantages
of
entrepreneurship
for
these
two
entrepreneurs.




Sources:
Deakins
and
Freel,
Chapter
3