"It depends on the industry, I think. In finance there's a lot of companies that only exist because of regulations. Every new regulation is essentially asking for a new product that complies with that regulation or finds a way around it. Compliance is a headache but not really a significant cost. On the flip side there's industries like telecom, where the barriers to entry are nearly impossible. Google Fiber is only a thing because Google has the muscle to get cities to give them exceptions to all sorts of rules that would inhibit a true startup. And that's also why it's only in a few cities. And then there's a certain class of entrepreneur (mostly tech guys) that just likes to tackle barriers to entry head-on. I'm thinking of Uber vs Taxis and Tesla vs Dealerships." - Eric P