What is Barriers to Entry?

A definition of Barriers to Entry

“Barriers to entry are obstacles that make it difficult for new businesses to enter and compete in a particular market. These can include high startup costs, strong brand loyalty, or regulatory requirements.”

Barriers to Entry in Business Glossary - What is Barriers to Entry?

Business Glossary > What is Barriers to Entry?


Examples of Barriers to Entry in a Sentence:

High licensing fees act as barriers to entry in the pharmaceutical industry.

Patents create barriers to entry by protecting existing companies from new competitors.

Barriers to entry in the tech industry often include substantial R&D expenditure.

Why is Barriers to Entry Important in Business?

Understanding barriers to entry is essential for businesses planning to enter a new market, as it helps them anticipate challenges and strategize accordingly. It can determine the feasibility and potential profitability of new ventures.

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Associated Terms

Here are some associated business terms and synonyms for “Barriers to Entry”:

  • Market Entry Barriers
  • Obstacles to Entry
  • Entry Barriers

Apple Barriers to Entry

Apple’s dominance in the smartphone market is fortified by barriers to entry such as proprietary technology and strong brand loyalty. These barriers have deterred many companies from competing directly with Apple.

Final Notes on Barriers to Entry

Barriers to entry significantly influence market dynamics and competition. Companies should assess these barriers to plan effective market entry strategies. Awareness of such barriers can guide decision-making and long-term planning.


This has been a definition of Barriers to Entry meaning.

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