Its referred to as barriers to entry. These are anything that prevents new startups from occuring. These can be natural or contrived.
As somebody who finally started their own business after 25 years of effort and a lot of luck I know these well.
The largest barrier is usually initial capital. Banks don’t give out loans to startups without assets. So if you have overall negative personal assets like large student loans, renting, car loans, etc you are fucked in getting a bank to fund your startup. I can’t get a line of credit for at least a year, probably 2. At least not one at a reasonable interest rate that doesn’t eatup all of my profit. I ended up taking a draw against expected revenue from a vendor who believes in me.
Health insurance (U.S), literally the reason I didn’t start my business 10 years ago & 5 years ago when I had 2 opportunities.
Business insurance: it took me 5 months to find somebody that would cover me.
Laws and regulations that create barriers to entry. These can be minor annoyance like fees and paperwork or major regulatory hurdles depending on the industry and country.
Infrastructure to conduct the business. I need highly specialized warehousing for 4 months of the year. I ended up renting from a company that is in a similar business as me that runs on a different cycle (they are empty when I need space). Building my own would require a loan… See above.
Available resources: Do competitors limit your available resources by market manipulation and anti-competative behavior. This is a huge one in industries dominated by oligarchies.
There are many more of these that are around.
Most of these can be alleviated by a fair sharing of revenue. 10 years ago I increased the companies net profit from $500K to $10million. They gave me 5% pay raise and $10k bonus out of a “Theoretical” $200K max.
My son fell into a bad group of mostly straight A kids in middle school.
They collected a large collection of webpage based games. They started out attempting to host them on the schools network through shared docs etc. The IT guys wised up to them and shut it down.
Then they turned into 14 year olds and took it up a notch.
Got together and paid for a hosting location overseas. Built a video hosting webpage with thousands of pirated educational videos. Made a secondary menu without any links on the homepage. They have to type in the index page in the URL. All of the games pages show up as educational videos in the history.
Most of the teachers in the school are using the free educational videos so the webpage is on the trusted site on the school districts content filter.
The IT teacher at highschool figured it out. Instead of ratting them out and banning the webpage. He started working on getting them scholarships to colleges. Now most of the ringleaders have full ride scholarships.
My son was invited in because he is extremely good at games (unusually fast reaction times). He holds the high score on most of the games. I don’t play against the little shit. It’s pointless to try to beat him.