Barrier to Entry

(redirected from Deterrent to Entry)

Barrier to Entry

A high cost or other difficulty that prevents or makes it difficult for new businesses to enter an industry. For instance, high regulation or customer loyalty may be barriers to entry for a new company. Barriers to entry provide a distinct advantage for companies already operating; these companies have high profit margins and few competitors. Examples of industries with barriers to entry are the telecommunications and energy industries, because of the high cost of infrastructure necessary to begin operations. See also: Barriers to exit.
References in periodicals archive ?
Tenders are invited for Security fences and gates are installed and used primarily to define the perimeter of protected areas, such as restricted areas, controlled areas, entry control/access control points, installation perimeters, and to provide a physical and psychological deterrent to entry and preventing unauthorized personnel from entering or exiting a protected areas.
A further pounds 13,000 has also been earmarked for fencing at Bradley Mills, Brown Royd Avenue (bottom end), Foxlow Avenue, Nether Close, Netherhall Avenue, Rawthorpe Crescent and Rawthorpe Lane to form a continuous barrier deterrent to entry from open land.
For many the thought of leaving university saddled with debts of over pounds 20,000 will be a deterrent to entry, particularly those students from poorer backgrounds.
duetsch notes that it is surprising that concentration was not a significant deterrent to entry in his sample of US industries, but was a significant, negative determinant of entry in Orr's Canadian sample.