The document discusses various barriers to entrepreneurship including social, economic, cultural, political, and personal barriers. Socially, entrepreneurship may be discouraged if a society values safety over risk-taking or considers business people inferior. Economically, barriers include lack of access to capital, unreliable labor markets, and inadequate infrastructure. Culturally, strong adherence to traditions and taboos can stifle entrepreneurial spirit. Politically, instability, burdensome regulations, and excessive government interference hamper new ventures. On a personal level, lack of commitment, perseverance, clear vision, and tolerance for ambiguity can inhibit entrepreneurship.

1. Barriers To Entrepreneurship
1. Why should we have some knowledge about barriers to entrepreneurship?
We should have some knowledge about barriers to entrepreneurship because of the following reasons.
1. An understanding of the inhibiting factors or barriers will help prospective entrepreneurs to develop a
strategy to overcome them.
2. A systematic study of the barriers will lead to a proper understanding of the fields or areas in which
they occur.
3. Once the barriers are clearly identified, the society, government and other supporting agencies can
develop effective programmes to tackle the issues to create a conducive entrepreneurial climate.
4. An insight into the barriers will lead to insight into the entrepreneur’s personality that is so essential in
the process of entrepreneurship.
2. Give two examples of barriers arising out of social environment?
The following are the examples of barriers arising out of social environment.(Write any two).
1. A society putting premium on safety and security in matters of securing a livelihood, such a value can
become a strong social barrier to entrepreneurship.
2. In some societies, the business is considered as a profession of lower hierarchy. Business people
are considered inferior to office-goes, engineers, doctors etc. Such a social response to
entrepreneurs can be a big hurdle in developing and nurturing entrepreneurs.
3. A society denyiing access to self-esteem will be placing hurdles in the path of an entrepreneur.
4. Social factors such as
insistence on conformity
an excessive protective attitude among children during their formative years
discouragement to mobility
will all thwart the following essential values of entrepreneurship.
creativity
innovative spirit
sense of adventure.
3. how can the economic environment create barriers for an entrepreneur?
The economic environment can create barriers for an entrepreneur because of the following reasons.
1. The capital for setting up the new venture is not accessible for the entrepreneur
2. Non-availability of labour at reasonable cost.
3. If the labour market is unreliable and and is fraught with undescipline and selfishness, it will also
become a barrier for entrepreneurship.

2. 4. Shortfall in the availability of raw materials in the desired quality and quantity.
5. Inadequate infrastructure to transport the raw material to the factory.
6. Non-availability of easy access to the market for the finished goods.
4. Do you think there are cultural barriers to entrepreneurship in our society? Discuss with
examples?
Yes. I agree that there are cultural barriers to entrepreneurship in our society.
This is evident from the fact that the cultural values in our society are bound by
conventionalism
status-quo
rituals
strong cultural taboos etc.
All these may curb the entrepreneurial spirit.
For instance, in the past, some societies in India discouraged people from going abroad believing that
crossing the sea was a cultural taboo.
Similarly certain field of work were considered unsuitable for people of culture.
Such strong cultural dictats can act as barriers to entrepreneurship.
5. Cite any two ways in which political environment can work against the interest of
entrepreneurs?
The political environment can work against the interest of entrepreneurs in the following ways (You can
choose any two of the following)
1. A political environment that is characterised by instability and insecurity will discourage
entrepreneurs.
2. Political policies can retard the growth of entrepreneurial ventures in a country.
3. Excessive interference in the form of controls, delays etc. from the government can discourage
prospective entrepreneurs.
6. Briefly discuss the personal barriers to entrepreneurship.
The personal barriers to entrepreneurship can be classified into two types.
1. Motivational : Once the venture starts functioning, the obstacles faced in the initial stages can make
the entrepreneurs to lose their commitment and consequently their level of motivation dips. The
entrepreneurs who lack toughness and perseverance often quit.
2. Perceptional : Certain perception barriers cn hamper the progress of the entrepreneur. Lack of a
clear vision and misunderstanding can result in faulty perception. If the entrepreneur demands
everything to be clear and well-defined in order to develop a perception, it will lead to disappointment.
As entrepreneur’s world is basically disorderly and ambiguous, the people who excessively depend
on order will find it a barrier to entrepreneurship.