Writing research papers is inevitable for a person who wants to advance their career. Such research papers come in varied ways based on your area of specialization. For instance, you’ve been given barriers to entry research paper. How will you begin the writing process? What are the elements you should consider and include in the paper to make it meaningful? To answer this and many other questions, keep reading this guide to understand how you can tackle barriers to entry research paper.

What are barriers to entry?

Before we highlight useful insights about entry barriers, you need to comprehend first the barriers to entry definition for a better understanding.

Barriers to entry is a common term used in business and economic fields used to describe elements that block newcomers from penetrating the market in a given segment. In the end, the entry barrier limits competition to the already existing business setups.

Barriers to entry examples

Depending on the market type, common barriers to entry are categorized into three, as highlighted below:

  • Artificial barriers to entry

These are barriers that come as a result of already existing setup actions. Therefore, such barriers revolve around customer loyalty (whereby customers are loyal to a specific setup), making it hard for new entries to find potential customers. Other artificial barriers to entry include brand, pricing, and switching costs.

  • Natural barriers to entry

Natural barriers to entry result from the effect of nature. Such barriers include economies of scale and network effects which block new entrants from penetrating the market segment with ease.

  • Government barriers to entry

Government barriers to entry are the challenges new entrants face as a result of government rules and regulations.

Different governments across the globe create different rules and conditions for firms. Some of these rules can be harsh, making it hard for new entrants to have their way into the market. Government barriers to entry can be in the form of harsh tax and licensing requirements, among other regulations.

Therefore, these three categories are the main determinants of barriers to entry.

Types of barriers to entry industries

Depending on the form and nature of the setup, we have two major industry categories of barriers to entry, i.e., low barriers to entry industries and high barriers to entry industries.

Industries with high barriers to entry

Industries or fields with high entry barriers have monopolistic nature, making it hard for newcomers to venture into the same market effectively. Such industries include:

  • Passenger Air Transportation

The air transportation sector has already established brands that customers are already used to. Although there is room for newcomers, it will take ages before they stabilize because of the set regulations and customer loyalty issues.

  • Pharmaceutical Manufacturing

Although pharmaceutical manufacturing is an industry with promising profits with manageable setup costs, the harshly laid out regulations make it hard for newcomers to establish such a business.

  • Online Casinos

The field of online casinos has an attractive client base globally. Besides, the field keeps growing as a result of advanced technology. However, the challenging part hindering new entrants is the high costs required to develop online gaming that will improve the customer experience.

Industries with low barriers to entry

Unlike high barriers to entry industries, low barrier industries face challenges that newcomers can overcome and establish their startups, which can pick up at some point. Such industries include:

  • Professional services

Professional services come in different forms. Depending on the professional services you offer, you can begin your startup and devise means how to overcome competition. For instance, you can offer manageable prices as you grow.   

  • Real estate

While the field of real estate may seem saturated, you only need to ensure you have the basic requirements, then set up a new startup and diversify your customer service approaches as a way of attracting potential customers to enjoy your services.

  • Retail and commerce

Many business owners have established retail and commerce stores. This shouldn’t prevent you from achieving your dream of setting up a customized retail and commerce store, either. All you need is to identify a specific niche, study, and gather useful resources to begin the process. Just like real estate and professional services, you can improve your service delivery in different ways to build your customer base.


When you have a paper on barriers to entry, you simply need to understand the basics of such a topic. Define the key terms, then begin the research process. This simple guide gives a highlight of the things you need to consider to bring out meaningful barriers to entry paper.

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