Barriers To Entrepreneurship

 ENTREPRENEURSHIP have  various characteristics, competencies, attitudes and values to convert opportunities in the environment and through their creativity, they give shape to these opportunities.

In this process of seeing opportunities, analysing environment, assembling resources and ultimately setting the enterprise, the entrepreneurship. At the same time, there are many hurdles or barriers, which discourage the spirit of entrepreneurship.

There are different competencies, factors, attitudes, and values which encourage the spirit of entrepreneurship. 

Here i want to focus on the factor which hinder the growth of entrepreneurship.

Now, why should we examine the barriers ?

  1. By examining these barriers, the entrepreneurs can make a strategy to overcome these factors. 
  2. A proper understanding of these barriers will help in proper understanding of the fields or area in which they occur.
  3. Once the barriers are clearly spotted, even government agencies and other groups can help to overcome them and create an environment which supports entrepreneurship. 
  4. By examining barriers, the entrepreneur will be able to into his own personality also
 Kinds of barriers     

Entrepreneur must understand these barriers and take proper steps to overcome them. If they fail, they will totally ruined as they are self employed and have to set up their fate with success of their enterprise. To understand these barriers, entrepreneurs must know which barriers are present in the economy. We can classify the barriers into two heads. (1.) Environmental barrier (2.) Personal barrier 

1. ENVIRONMENTAL BARRIER 

        In entrepreneurial process, environment plays a very important role. A supportive environment or environment full of opportunities is always better for an entrepreneur as compared to an environment full of constraints. To understand the environmental factors, we have to classify environment under :

1. Social Environment
     Social environment refers to customers, traditions, beliefs and thoughts of members of the society where business exists. It influences the thought pattern and mindset. Social norms are generally built at a very early stage of our life and influence our living pattern. The values and traditions, which we learn in our childhood generally govern our whole life and these have great influences on the enterprise. For example, if in a society, businessmen get less respect and are considered inferior as compared to office-goers,doctors,engineers, etc. then such environment will discourage the spirit of entrepreneurship. Similarly, when people give more important to safety and security need as compared to adventure and self- actualisation need then, it acts as a barrier for growth of entrepreneurship, Common social factors, which act as a barrier for the entrepreneurs are : insistence on conformity, excessive protective attitude, discouraging mobility of people, inferior status of businessmen, more importance to safety- security need etc. 

2. Economic Environment 
     Capital,labour, raw material and market are important prerequisites for any enterprise. An environment where there factors are easily available at reasonable cost, support entrepreneurial spirit. On the other hand, if these factors are not easily available or are available at high cost or if the finance is available at a very high rate of interest then this will discourage entrepreneurial spirit.

Another economic factors that is must for entrepreneurship is availability of labour. Labour includes skilled, unskilled and technical workforce. Not only its availability, but its availability at reasonable rate is must and it must be productive and sincere. Non-productive and dishonest labour can also bring problem for enterprise. If labour is indisciplined, dishonest and very expensive then its a big barrier to the entrepreneurship. 

Third important economic factor, which is important for entrepreneurial growth is availability of raw material, inputs and other supplies. There must be proper infrastructure to access the raw material. If these are not easily accessible then it cam also be a big barrier. 

The last economic factor which influences growth of entrepreneurship is good market for finished product. If there is no accessibility to market for selling finished products, then it can become a serious barrier to entrepreneurship. 

3. Cultural Environment 
     Every society has its own cultural values. If the culture of the society supports risk taking, creativity and adventurous spirit then it will boost the entrepreneurial spirit.On the land, if the cultural values are more conventional and there is strong belief in rituals then, it become a big hurdle for entrepreneurial growth. For example, in some cultures, people of a particular caste are not considered suitable for entrepreneurship. 

4. Political Environment 
     Unstability and insecurity of political environment curb the growth of entrepreneurship. Even the political policies can affect the growth of entrepreneurship. Excessive interference and control by government discourage entrepreneurs.
The most important thing in political environment is the degree of stability it bring to the country. Entrepreneurial activities always grow in the environment of political stability and peace. For example, entrepreneurship reached to a new height in Renaissance period because of stability, peace and power balance between king.

  2. PERSONAL BARRIERS

      These barriers are related to the personality, characteristics and attitudes of the entrepreneur himself. The two common personal barrier etc:
  • MOTIVATION
  • PERCEPTION 
MOTIVATION

Sustained motivation is an important asset for an entrepreneur. All successful entrepreneurs are highly motivated. They have the drive or desire of achievements. Motivation is the most important characteristic of an entrepreneur. We have seen that when entrepreneurs have competencies but lack of motivation, they are unable to pursue their ventures in the long run. Many entrepreneurs are enthusiastic at the initial stages of entrepreneurship. When the projects starts and they face certain obstacles and barriers, they start losing their enthusiasm and their motivation drops. So entrepreneurs do not require motivation only at initial stages but they must have the toughness and some emotional qualities to pursue the motivation till end. Entrepreneurs also have strong foundation of motivation of never quitting. If an entrepreneur does not get demotivated with the obstacles of  business the, he can establish himself as a successful entrepreneur. 

PERCEPTION 

There are certain types perception barriers which curb the growth of entrepreneurship. An entrepreneur cannot get a clear vision every time. The entrepreneurial world is highly disturbed and ambiguous. So people who depend upon orderly system will find it difficult to prosper. Lack of clear vision and misunderstanding a situation can result in faulty perception. Every entrepreneurial venture involves some amount of risk. The entrepreneur must have the perception of the risk and must prepare a strategy to manage it. The entrepreneur must have a high level of tolerance for ambiguity and chose. 
       
  





                                     

                                     

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