The document discusses various barriers to entrepreneurship identified by Krasniqi (2007), including:
1. Macroeconomic barriers related to government policies that can help or hinder private business participation.
2. Legal and regulatory barriers posed by complex registration procedures, laws, and regulations.
3. Corruption and unfair competition barriers caused by excessive government regulations that enable corruption.
4. Financial barriers where start-ups have difficulty obtaining loans from banks.
5. Tax burden barriers where governments charge high taxes on small businesses.
6. Talent attraction barriers where professionals prefer large corporations over small start-ups.
7. Raw material sourcing barriers where entrepreneurs may struggle to find suppliers
The document discusses various barriers to entrepreneurship identified by Krasniqi (2007), including:
1. Macroeconomic barriers related to government policies that can help or hinder private business participation.
2. Legal and regulatory barriers posed by complex registration procedures, laws, and regulations.
3. Corruption and unfair competition barriers caused by excessive government regulations that enable corruption.
4. Financial barriers where start-ups have difficulty obtaining loans from banks.
5. Tax burden barriers where governments charge high taxes on small businesses.
6. Talent attraction barriers where professionals prefer large corporations over small start-ups.
7. Raw material sourcing barriers where entrepreneurs may struggle to find suppliers
The document discusses various barriers to entrepreneurship identified by Krasniqi (2007), including:
1. Macroeconomic barriers related to government policies that can help or hinder private business participation.
2. Legal and regulatory barriers posed by complex registration procedures, laws, and regulations.
3. Corruption and unfair competition barriers caused by excessive government regulations that enable corruption.
4. Financial barriers where start-ups have difficulty obtaining loans from banks.
5. Tax burden barriers where governments charge high taxes on small businesses.
6. Talent attraction barriers where professionals prefer large corporations over small start-ups.
7. Raw material sourcing barriers where entrepreneurs may struggle to find suppliers
The document discusses various barriers to entrepreneurship identified by Krasniqi (2007), including:
1. Macroeconomic barriers related to government policies that can help or hinder private business participation.
2. Legal and regulatory barriers posed by complex registration procedures, laws, and regulations.
3. Corruption and unfair competition barriers caused by excessive government regulations that enable corruption.
4. Financial barriers where start-ups have difficulty obtaining loans from banks.
5. Tax burden barriers where governments charge high taxes on small businesses.
6. Talent attraction barriers where professionals prefer large corporations over small start-ups.
7. Raw material sourcing barriers where entrepreneurs may struggle to find suppliers
Macroeconomic environment conducive to entrepreneurship is dependent upon the policies of the government in supporting private participation in business. Macro means large and the term macroeconomic means the larger view of the economy. It is different from the micro (small) view which concerns a firm or a company in the market. For example, in India the process of liberalization started during the mid-1980s whereby the government started the process of encouraging foreign MNCs (multinational corporations) to create joint ventures (JVs) with Indian domestic companies. This process created a macroeconomic environment in which many new small and medium enterprises (SMEs) evolved to become suppliers and vendors for the JVs so created.
environment: The legal and regulatory environment for entrepreneurship is formed by registration and licensing procedures, commercial and contractual laws, property rights laws, bankruptcy and collateral law, real estate regulations and labour laws. If the administrative procedures and laws are unclear, time-consuming and cumbersome, they would pose barriers to entrepreneurship.
3.3 Corruption and unfair
competition: A corrupt economy can lead to unfair competition, which in turn can become a major deterrent to entrepreneurial activity. Excessive regulations and approvals from the government required by entrepreneurs may make the government officials corrupt.
3.4 Financial obstacles:
Start-up ventures are usually dependent upon capital to be sourced from banks and financial institutions. It has 48 been observed that in many economies banks are reluctant to give loans to small start-up firms.
3.5 Tax burden:
In many regions, the government charges high taxes from even small start-up ventures and has tedious procedures for compliance of tax submission formalities. In order to promote entrepreneurship, the governments would need to have rational tax structures with easy tax submission procedures.
This is another big issue faced by small start-up companies. The best of talent in engineering, management and other disciplines wants to work for multinational corporations (MNCs)rather than for small start-ups. This attitude of professionals makes it difficult for entrepreneurs to attract them for their entrepreneurial ventures. Thus, there is a dire need to create an ecosystem for entrepreneurship so that budding professionals start valuing their association with entrepreneurial ventures compared to working for the MNCs.
3.7 Difficulty to source raw
material: For entering a market with a product, an entrepreneur has to identify if the suppliers of raw materials and components existing in the market have adequate capacity or are willing to expand capacity to meet the requirements of a new player in the industry (Porter, 1998). If not, then it becomes imperative to establish new suppliers in the market, which may be cumbersome for the entrepreneur. Thus, this difficulty to source raw materials and components often deters entrepreneurs to enter the market.
The Comprehensive Guide for Minority Tech Startups Securing Lucrative Government Contracts, Harnessing Business Opportunities, and Achieving Long-Term Success
