Page 2 - Microsoft Word - HA code - 241507010121

acceptance in that region. If, however he fails to do so, then it will definitely act as a cultural
barrier.

E.g. if Pizza Hut serves pork or beef in India, then being against the culture of the country , they
are bound to fail.

(iv) Political barriers: It provides the legal framework within which business is to function. This
environment is influenced by political organizations, stability at the centre, government’s
intervention in business, constitutional provisions, etc. The viability of business depends upon
the ability with which an entrepreneur can meet the challenges arising due to the above
factors.

 Personal barriers to entrepreneurship arise due to the fact that people in general prefer
employment over entrepreneurship. The various personal barriers are as follows :

(i) Perceptual barriers: These barriers arise because an entrepreneur has failed to understand
and assess a situation correctly.

(ii) Motivational barriers: Motivational barrier is a form of personal barrier. Sustained
motivation is an essential input in any entrepreneurial venture. Lack of motivation is a strong
barrier to entrepreneurship.

 Business incubation: It is a unique and highly flexible combination of business
development processes, infrastructure and people designed to nurture new and small

businesses by helping them to survive and grow through the difficult and vulnerable
early stages of development. Business incubation programmes are often sponsored by
private companies or public institutions like colleges and universities with a view to
help, create and grow young businesses by providing them with necessary support and
financial and technical services.
 Business incubators: There are individuals or institutes operating the business
incubation programmes. Business incubators help to accelerate the growth and success
of entrepreneurial companies through an array of business support resources and

services.

2. Role of Incubators in Helping Start-ups to get Funding: Three ways as to how
incubators help start-ups to get funding are as follows:

(i) Connecting companies with angel investors.

(ii) Assisting companies in applying for loans.