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LECTURE NOTES

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XI ENTREPRENEURSHIP

TOPIC-ENTREPRENEURSHIP AS INNOVATION AND

PROBLEM SOLVING

SUB TOPIC- BARRIERS TO ENTREPRENEURSHIP AND SUPPORT SYSTEM
OF GOVERNMENT
1. Barriers to entrepreneurship are the factors which inhibit the growth of
entrepreneurship and do not let them operate at its full potential. The factors relating
to barriers to entrepreneurship can be classified as :

( i) Environmental barriers (ii) personal barriers

 Environmental barriers: The development of entrepreneurship is often influenced by
factors such as economic, social, cultural and political. These factors are collectively
referred to as environmental factors.

These factors may have both the positive as well as negative influences on the emergence and
growth of entrepreneurship. The negative influence of these factors is referred to as
'environmental barriers'.

The various types of environmental barriers are discussed below:

(i) Economic barriers: For the development of an enterprise, an entrepreneur needs factors of
production such as land, labour, capital, material, market, etc. Thus, an environment, where all
these factors are easily available to the entrepreneur, will naturally support and promote
entrepreneurship. On the other hand, if any of these factors are not available or are of
inadequate quality and quantity, then they can become barriers to entrepreneurship

(ii) Social barriers: Social factors such as caste structure, mobility of labour, customer needs,
cultural heritage, respect for senior citizens, values of an individual, etc, have a far reaching
impact on business. E.g. in India, attitudes have changed with respect to food and clothing as a
result of industrialization, employment of women in factories and offices, and the increased
level of education.

(iii) Cultural barrier: It is a form of environmental barrier. Every society has its own cultural
values, beliefs and norms. An entrepreneur will have to keep in mind the cultural reference of

the region that he/she is going to cater to, as this will enable him/her to get a quicker