Barrier to Entry
/ˈbæriər tə ˈɛntri/
Definitions
- (n.) A condition or obstacle that makes it difficult or impossible for new competitors to enter a market or industry.
The high startup costs serve as a barrier to entry for small businesses.
- (n.) A legal restriction or regulation that prevents or limits market entry by potential competitors.
The licensing requirements act as a barrier to entry in the healthcare sector.
Forms
- barriers to entry
Related terms
See also
Commentary
In legal drafting, clearly identify whether the barrier is economic or regulatory to specify its scope and impact.
This glossary is for general informational and educational purposes only. Definitions are jurisdiction-agnostic but reflect terminology and concepts primarily drawn from English and American legal traditions. Nothing herein constitutes legal advice or creates a lawyer-client relationship. Users should consult qualified counsel for advice on specific matters or jurisdictions.