On barriers to entry | Business

Founder and director of financial and investment education website JustOneLap.com, Simon Brown.

I was hosting a webcast presented by Keith McLachlan of Integral Asset Management on an introduction to fundamentals and he reminded me of something I have written about before – barriers to entry for competitors. But he added some extra thoughts that are well worth repeating here. Firstly, those traditional barriers to entry are often legal. This is when a license is required which the state doesn’t hand out all that often. Casinos are examples. We could have dozens of them in any city, but to make them profitable and hence attractive for operators, the state limits the number of casinos and new competition in the same geography is unlikely.

Banks are also an example as they require not only a large amount of start-up capital , but also a rigorous approval process by the South African Reserve Bank.This protects customers, but also protects the existing banks. Now sure, we have seen several new entrants over the last few years, but it is not a mad gold rush situation where a new bank opens every other month.Get 14 days free to read all our investigative and in-depth journalism. Thereafter you will be billed R75 per month.

Ireland Ireland Latest News, Ireland Ireland Headlines

Similar News:You can also read news stories similar to this one that we have collected from other news sources.

Simon’s weekly wrap: Business adapting to the times[LISTEN] This week MoneywebNOW looked at Naspers and Prosus results, retail trends post-pandemic and amid an energy crisis, green bonds for home solar, Nike results and balancing ESG elements, with SimonPB MoneywebNOW Naspers Prosus Naspers SimonPB ɪ'ᴍ ɴᴏ ᴇxᴘᴇʀᴛ ɪɴ ᴛʀᴀᴅɪɴɢ ʙᴜᴛ ɪ ʜᴀᴅ ɢᴏᴏᴅ ɢᴜɪᴅᴀɴᴄᴇ ᴡɪᴛʜ mamats38 ᴀɴᴅ ʜer ᴛᴇᴀᴍ, ɪᴛ'ꜱ ʙᴇʏᴏɴᴅ ᴇʏᴇ ᴏᴘᴇɴɪɴɢ, ᴡɪᴛʜ ᴛʜᴇꜱᴇ ᴛᴇᴀᴄʜɪɴɢꜱ ᴀɴᴅ ᴛʀᴀᴅɪɴɢ ꜱᴋɪʟʟ, I'ᴠᴇ ʜᴀᴅ ɴᴏᴛʜɪɴɢ ʙᴜᴛ ᴄᴏɴᴛɪɴᴜᴇᴅ ꜱᴜᴄᴄᴇꜱꜱ.
Source: Moneyweb - 🏆 5. / 77 Read more »

Helping business flow – Simon Ward explains how Floatpays helps South Africans overcome financial challengesSimon Ward meets with Michael Avery to discuss Floatpays and the financial services it offers to South Africans.
Source: BusinessTechSA - 🏆 24. / 61 Read more »

Helping business flow – Dr Simon Kekana discusses the challenges facing South African educationDr Simon Kekana has a deep understanding of the challenges facing the South African education sector and provides valuable insights in this Helping business flow episode with Michael Avery.
Source: BusinessTechSA - 🏆 24. / 61 Read more »