Do Entry Barriers, Perceived by SMEs, Affect Real Antry? Some Evidence From the Netherlands

Provided by: EIM Business & Policy Research
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This paper is to analyze the relationship between perceived entry barriers and real entry. Real entry rates are interpreted as an indicator for the dynamics in an industry. The major hypothesis of this paper is that important entry barriers restrict new entry. Real entry rates are provided by a starter ratio for different industrial sectors and provinces in the Netherlands. Firms were interviewed to obtain data about the perceived importance of a large number of entry barriers (structural as well as strategic). The most important barriers, perceived by firms, are related to acquiring sufficient sales volume and capital, financial risks, cost disadvantages, cost of capital, economies of scale and product differentiation.

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