Several barriers can limit an entrepreneur's ability to secure capital:
Lack of Collateral: Many financial institutions require collateral to secure a loan, which many startups lack. Insufficient Credit History: Banks and other lenders often rely on credit history to assess the risk of lending. High Risk Perception: Startups are often viewed as high-risk investments, making investors hesitant. Information Asymmetry: Entrepreneurs may not have access to the information needed to identify potential funding sources. Regulatory Hurdles: Complex regulatory requirements can also be a significant barrier.