barriers to entry

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barriers to entry

Anything that makes it difficult for a company to establish itself in a new market. Barriers to entry may range from high initial investment costs to illegal restrictive practices.
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A barrier to entry of some height instead typically permits established firms to raise price above the minimum cost level without inducting an automatic correction through entry and potentially to raise it high enough to permit them to operate profitably with unit costs which are not the lowest attainable for the going industry output'[Bain, 1952, p.
This appears to be a significant barrier to entry in small banking markets.