Barriers to entry describe high start-up costs or other barriers that prevent new competitors from easily entering an industry or area of business.
Barriers to entry benefit existing firms because they protect their revenues and profits and prevent others from taking market share.
Barriers to entry can be caused naturally, by government intervention, or by pressure from established firms.
Each industry has its own set of entry barriers that startups have to face.
Barriers to entry can be financial (high cost to enter the market), regulatory (laws restricting trade) or operational (attempts to attract loyal customers or unavailability of trade channels).
Animal spirits come from the Latin spiritus animalis: “breath that awakens the human mind.” It was introduced by the British economist John Maynard Keynes in 1936.
“Best Effort” is a legal term that represents the obligation of a party to a contract to take all possible steps to fulfill the terms of the agreement.
Black Monday refers to the stock market crash that occurred on October 19, 1987, when the Dow Jones Industrial Average lost almost 22% in one day, causing the global stock market to crash.
Desperate workers are workers who have stopped looking for work because they did not find suitable employment options or were not shortlisted when applying for a job.
The causes of employee frustration are complex and varied.
Disequilibrium is when external forces cause an imbalance between supply and demand in the market. In response, the market enters a state in which supply and demand do not match.
Economic equilibrium is a state in which market forces are balanced, a concept borrowed from the physical sciences, where observable physical forces can balance each other.