Barrier s to

be ing a n
entre pr eneur
Entrepreneur Barriers
Ge nera l F act ors
Access to finance
Government regulations
Social / cultural attitude
Education / skills training
Business support
Administration hurdles
Competition
Corruption
Market demand
Entrepreneur Barriers
In di vi du al R isks
Financial risk
Social protection risk
Fear of failure
Workload / pressure to perform
Gender
 Entrepreneur Barriers
Acce ss t o fi nan ce
Knowledge of where to obtain financing

Lack of institutions willing to take a

chance on a young start up

Need someone to stand as surety for you

GENERAL
FACTORS
 Entrepreneur Barriers
Gover nme nt
Regu lations
Bureaucratic obstructions

Eg: Company Registrations

Eg: VAT Registration

GENERAL Eg: Reporting requirement

FACTORS
 Entrepreneur Barriers
Soc ial / Cul tural
at tit ude
Society is still very risk adverse

Older generation still carries the “get a

job” attitude

Entrepreneurs are viewed as people on a

GENERAL pedestal and not everyday folk
FACTORS
 Entrepreneur Barriers
Edu cation / Ski ll s
train ing
Basic education is still repetition based
and doesn’t encourage big picture
thinking

Required entrepreneur and practical

skills are not taught at school level
GENERAL
Adult courses are expensive
FACTORS
Skills provided don’t match market
opportunities
 Entrepreneur Barriers
Bu sin ess Suppor t
Lack of mentoring & counselling support
for young entrepreneurs

Limited access to affordable working

space

Difficult to gain access to the correct

GENERAL business networks
FACTORS
 Entrepreneur Barriers
Admin is tration
Hur dl es
Need to meet licensing & regulatory
requirements
Eg: Tax regulations – unsupportive &
complex

Eg: Tax level – very high for start up

GENERAL
Eg: Bankruptcy laws – leveraged
FACTORS towards business failure
 Entrepreneur Barriers
Admin is tration
Hur dl es
Need to meet licensing & regulatory
requirements
Eg: Property, copyright & patent
regulations – poorly enforced or too
strict

GENERAL Eg: Competition law – restricted

market access
FACTORS

Eg: Subsidies & national trade policy

 Entrepreneur Barriers
Com pet ition
Easier entrepreneurial opportunities are
flooded

• Eg: Restaurant industry

• Established market players hold

GENERAL influence and can use cut throat
FACTORS techniques
 Entrepreneur Barriers
Cor rupt ion
The tender process and available
contracts Easier entrepreneurial
opportunities are flooded

• Eg: Restaurant industry

• Established market players hold

GENERAL influence and can use cut throat
FACTORS techniques when they feel threatened by
a new competitor
 Entrepreneur Barriers
Mark et De mand
Deciding on how to place and sell
yourself in the market when there is a
demand but entrance into it is hard

A great idea doesn’t necessarily equal

great market demand or sales
GENERAL
FACTORS
 Entrepreneur Barriers
Fin ancia l Ri sk
Could lose savings which have been
used to build a failed business

No security of where the next pay cheque

is coming from

Cashflow structuring vs chasing the

INDIVIDUAL
carrot is a critical balance to find
RISKS
Ability to repay the loans and credit that
has been taken
 Entrepreneur Barriers
Soc ial Pro te ct ion Risk
Give up pension, medical aid and other
corporate benefits

No back up or safety net if fail

De-stable retirement plans and saving

funds to finance new business
INDIVIDUAL
RISKS
 Entrepreneur Barriers
Fe ar of Fai lu re
Human nature to go for the “safe” play

Worried about what friends and family

would think if business failed – backseat
drivers

INDIVIDUAL
RISKS
 Entrepreneur Barriers
Wo rk load / Pr essu re
to P erfor m
One person performs many more tasks
than usual

What I put in I get out syndrome

No opportunities to take a laid back day

INDIVIDUAL
RISKS
Stress from family / self to perform
 Entrepreneur Barriers
Gender
Society view that women are not
entrepreneurs

Difficulty encountered in obtaining

finance and buy into ideas from
independent parties
INDIVIDUAL
RISKS