Entrepreneurs can adopt several strategies to reduce transaction costs:
1. Utilize Technology: Leveraging technology, such as cloud computing and automation, can streamline processes and reduce the need for manual intervention. 2. Form Strategic Partnerships: Collaborating with other businesses can help share resources and reduce costs related to marketing, distribution, and supply chain management. 3. Negotiate Better Terms: Building strong relationships with suppliers and negotiating favorable terms can reduce costs associated with purchasing and logistics. 4. Outsource Non-Core Activities: Outsourcing functions such as accounting, IT services, and customer support can reduce overheads and free up resources for core business activities.