What impact do government regulations typically have on new entrants in a market?

Government regulations typically create barriers to entry for new entrants in a market. Regulations can take many forms, including licensing requirements, safety standards, and environmental regulations, which often require significant investment of time and resources to comply with. These requirements can discourage new businesses from entering the market because they increase the overall cost and complexity of establishing a new venture. By enforcing certain standards, regulations can protect established companies that are already compliant, making it harder for newcomers to compete effectively. As a result, potential entrants may decide to forgo or delay entry into the market, thereby reducing competition.