Uncertainty about profitability

Not knowing where to start

Regulatory complexity

access to funding, which was cited by over a third of aspiring entrepreneurs as their main obstacle. Other significant barriers include the fear of failure, uncertainty about profitability, not knowing where to start, and dealing with complex regulations and bureaucracy. 

• Inadequate access to capital is cited as a primary, top-level barrier, making it difficult for entrepreneurs to start

• Complicated, slow, and expensive government licensing and permit procedures, particularly at the local government level, frustrate business owners.

• Poor, unreliable, and slow internet connectivity, particularly in rural areas, limits the ability of businesses to digitalize and compete.

• Prohibitive rental rates, particularly in malls, and high business taxes (up to 25%) create significant financial pressure.

  
  

Tax and regulatory burden, including complex compliance costs and frequent changes in policy

High cost of living and doing business, impacting wages, talent retention, and operational expenses

Access to skilled talent and shortages in key sectors (e.g., tech, engineering, manufacturing)

Burdensome administrative processes and bureaucratic red tape for starting and growing a business

Limited export and international market access, plus regulatory friction for cross-border activity

Uncertainty around post-Brexit trade rules and regulatory alignment with the EU

Infrastructure gaps in certain regions, including digital connectivity and transport

Competition for funding and mentorship in a crowded ecosystem

Mental health and well-being pressures on founders, influencing resilience and longevity

Bureaucracy – Too much paperwork and changing regulations.

Access to funding – Start-ups often struggle to get investment or loans.

Unpredictable policies – Tax and business rules can change quickly.

Workforce shortages – Many skilled workers have emigrated.

Low trust environment – Late payments and reluctance to take risks.

Corruption and favouritism – Still an issue in some sectors.

On the positive side, Romania offers low operating costs, strong IT talent, fast internet, and access to the EU market, creating significant opportunities for entrepreneurs.

1. High cost of living and business space (main barrier)

London has some of the highest:

• Commercial rents (offices, retail, co-working space)

• Salaries (to match living costs)

• Personal living costs for founders (housing, transport)

This makes it harder to:

• Start lean

• Survive early cash-flow gaps

• Hire and retain talent on a budget

2. Access to early-stage funding (especially outside tech)

While London is a major financial hub, funding is uneven:

• Strong for fintech and high-growth tech startups

• Much harder for traditional small businesses or first-time founders without networks

3. Competition and market saturation

London is one of the most entrepreneur-dense cities in Europe:

• Many startups competing in the same sectors

• Harder to stand out or acquire customers cheaply

• Marketing costs are higher due to competition

4. Regulatory and administrative friction

Starting a business is relatively straightforward in the UK, but founders still face:

• Tax complexity (VAT, PAYE, corporation tax)

• Licensing rules in certain sectors (food, transport, hospitality)

• Compliance overhead that grows quickly with scale

5. Talent competition

London attracts global companies:

• Startups compete with banks, consultancies, and Big Tech for talent

• This pushes wages up and makes hiring harder for early-stage firms

Bottom line

If you compress it into one sentence:

London’s biggest barrier to entrepreneurship is the high cost base, which makes it expensive to start, survive, and scale before reaching stable revenue.

High cost of operating in london.

Skills gap in sales and marketing

Physiological barriers (fear confidence risk)

Another major challenge is bureaucracy and corruption. Entrepreneurs frequently face lengthy registration procedures, licensing requirements, and administrative delays when setting up a business. These processes increase costs and discourage innovation. Several business surveys in Portugal have identified inefficient bureaucracy and corruption as among the most significant obstacles to doing business.

Furthermore, many entrepreneurs experience skill shortages and lack of support networks. Limited access to business training, mentorship, and professional networks can make it harder for new business owners to compete and grow. Social attitudes toward business failure can also discourage individuals from taking entrepreneurial risks.

Overall, while Portugal offers significant opportunities for entrepreneurship due to its large population and growing economy, access to finance remains the most critical barrier, followed closely by bureaucratic inefficiencies and corruption. Addressing these challenges would help create a more supportive environment for entrepreneurs and encourage business growth and innovation.

Other major barriers include:

1. High taxes and operating costs

2. Complex regulation and bureaucracy

3. Risk-averse culture around failure

4. Difficulty scaling businesses after launch

One

The finacncial litracey to understanding the theory of how to run a bussiness

Two

Have adequate funding that does not put low class familes back or worse yet. Make the company owners worser into poverty.

Three

The lack of network, of indivuals who are like minded that have been silimar and/or same situations. That could give point advice on what to do and not to do