Barriers to Entrepreneurship Quiz PDF

Barriers to entrepreneurship Barriers to entrepreneurship introduction There are lots of barriers to entrepreneurship, or reasons that people don’t start up their own business. These are the five that the exam board would like you to be able to discuss. Get ready to make some notes on these on the...

Barriers to entrepreneurship Barriers to entrepreneurship introduction There are lots of barriers to entrepreneurship, or reasons that people don’t start up their own business. These are the five that the exam board would like you to be able to discuss. Get ready to make some notes on these on the next few slides: 1. Entrepreneurial capacity 2. Access to finance 3. Lack of training / knowhow 4. Fear of failure 5. lack of confidence #1 Entrepreneurial capacity There is a growing awareness that entrepreneurial skills, knowledge and attitudes can be learned and in turn lead to the widespread development of entrepreneurial mind-sets and culture, which benefit individuals and society as a whole Lack of this capacity or ability can be a barrier to entrepreneurship What does this mean in simple terms? #2 Access to finance Many entrepreneurs cannot start their business because off a lack of funding They may not have savings themselves or family that they can ask to help Many banks are not keen to lend to start-ups because of a lack of historical data of sales, making them a very risky investment, despite many government initiatives to make loans cheaper  Access to finance This is a chart to show the sources of finance used by start-up businesses in UK. MFI means monetary financial institutions such as building societies. #3 Lack of training / knowhow Many entrepreneurs lack training or know-how of just how to start a business This can put off people who would like to start their own business, but are just not sure how to get started Many of the sites e.g. eBay and Etsy contain lots of information on how to start a business HMRC and Gov.uk website contains information to help entrepreneurs to get started #4 Fear of failure Many potential entrepreneurs do not start a business for fear of failing It can be the failure itself or the cost of failure which may put potential business users off Especially if they are giving up a regular salaried job to start out on their own, this is a risk #5 Lack of confidence Many potential entrepreneurs lack the confidence to embark on a new adventure with their start up business This can be a huge barrier to them becoming an entrepreneur This can be overcome with training, information and marketing, when they are sure they have a product which will sell they may gain confidence