Barriers to entry

Barriers to entry are things that make it harder for new businesses to enter a market. For example, imagine you wanted to open a pet store. If there were already a lot of other pet stores in the same city, it would be harder for you to make money because the marketplace is already crowded. If you had to buy expensive equipment to open the store, or get a special license from the government, it would also be harder for you to make money. These things are called barriers to entry and they can make it harder for new businesses to start up.