how do start up costs discourage entrepreneurs from entering a market
If the cost is to high some entreprenurs cannot aftord to pay the costs of the start up so they would have to get a loan. If they have credit it will be extremely hard to recieve that money as well they may be discouraged that 75% of all starting up business fail and may worry that they cant pay back that amount which could result in them going bankrupt and having the bank taking their possesions for the momey they loaned