Best practices for overcoming language barriers in business

Barriers to entry determine how easily new businesses can enter and compete in a market. Understanding these barriers — including language barriers and other structural or economic challenges — is critical for companies expanding globally and seeking sustainable success.

Key takeaways

• Barriers to entry limit how easily new businesses can compete in existing markets.
• Language barriers, government regulations, and startup costs are common challenges.
• Overcoming barriers requires localization, innovation, and local partnerships.
• Companies that adapt to language and cultural differences gain competitive advantage.

What are barriers to entry?

Barriers to entry are the economic, structural, or regulatory challenges that influence how easily entrants can enter and compete in a market. These entry barriers can take many forms: high startup costs, strict government regulations, strong brand loyalty, or monopolistic competition.

When expanding internationally, language barriers often appear alongside these structural hurdles. Each market has its own mix of economic, cultural, and legal idiosyncrasies. Identifying these early helps companies anticipate risks, refine their market entry strategy, and compete more effectively in global markets.

Types of barriers to entry

Businesses face a range of barriers when expanding into new markets. These typically fall into three categories: natural, artificial, and industry-specific. Understanding each type allows leaders to craft strategies that minimize risk and accelerate global expansion.

1. Natural barriers

Natural entry barriers are shaped by the fundamental dynamics of a market, such as competition, cost structures, and customer loyalty. Large retailers benefit from economies of scale that make it difficult for smaller entrants to compete on price. Similarly, a food and beverage company entering a mature market may struggle against established players that dominate shelf space and distribution channels.

2. Artificial barriers

Artificial barriers often arise from deliberate actions or external controls, such as government regulations or competitive tactics. Import laws, licensing requirements, or data protection rules can slow a company’s ability to enter new markets. In some cases, established players may use strategies like predatory pricing or exclusive agreements to keep new competitors out, creating an uneven playing field in industries like telecommunications or eCommerce.

3. Industry-specific barriers

Every industry has its own challenges when entering new markets. In healthcare, strict compliance rules can slow expansion and drive up costs. In tech and media, the pace of innovation, intellectual property concerns, and shifting consumer trends make it tough to stay ahead. In finance, steep capital requirements and complex licensing rules often set a high bar for new entrants.

Understanding these nuances — including the language barriers that affect how businesses communicate with regulators, partners, and customers — helps companies approach each market with greater clarity and confidence.

Overcoming barriers to entry: 3 strategies for growth and global expansion

While market entry barriers can seem daunting, they are not insurmountable. By developing thoughtful strategies and leveraging the right tools, businesses can effectively navigate these obstacles and position themselves for success in new regions.

1. Develop a strong localization strategy

Localization is one of the most powerful tools for overcoming market barriers, especially language barriers. Differences in language, culture, and local legal requirements can all limit how effectively a brand enters new markets.

According to research, 76% of consumers favor brands that provide information in their own language — demonstrating how localization directly influences buying decisions. Effective localization allows companies to communicate authentically, meet customer expectations, and comply with regulations while maintaining brand consistency.

Smartling helps globally focused eCommerce companies localize their websites efficiently and at scale, enabling them to connect with buyers in their native language. This not only simplifies the buying process but also enhances multilingual UX design, supports global SEO performance, and strengthens brand credibility in every market.

2. Leverage innovation and technology

Innovation and technology can help businesses overcome a range of natural and artificial entry barriers. Digital platforms make entering new markets easier by reducing the need for physical infrastructure. Cloud-based tools and data analytics help global teams collaborate across time zones and gain insights into consumer behavior in real time.

Localization tools, such as AI-powered translation and a robust translation management system, help companies scale efficiently while building experiences that feel local and authentic to every customer. By investing in technology, businesses can compete effectively even in highly regulated or monopolistic industries.

3. Build strategic partnerships and local expertise

Forming alliances with local partners provides valuable market insights, operational support, and credibility. Partnerships help navigate government regulations, adapt to cultural norms, and accelerate time-to-market.

Collaborating with distributors, agencies, or regional experts enables new entrants to overcome competition and establish a strong local presence. These partnerships also help address barriers such as limited language fluency, high setup costs, or complex compliance requirements.

Combining local insight with a strong global strategy helps companies outperform entrenched competitors and remain agile in dynamic markets.

Overcome market entry and language barriers with Smartling

Understanding barriers to entry is crucial for any business seeking to enter new or competitive markets — whether those are established regions or emerging markets. By identifying these obstacles, companies can craft targeted strategies that turn potential roadblocks into opportunities. 

The next step is translating those strategies into meaningful market engagement. Localization, innovative practices, and tailored approaches enable companies to adapt to market demands, enhance their international market positioning, and connect with diverse audiences.

As a leading localization software and services provider for enterprises, Smartling offers a best-in-class translation platform, advanced AI-powered translation solutions, and specialized translation services across industries. Whether you’re looking to expand into new regions or optimize your global operations, we provide the technology and expertise you need to succeed. 

Ready to take your next step toward global growth? Download our e-book, Top 5 Insights to Improve Your Localization Strategy, to access actionable strategies for improving your localization programs. You’ll learn how to streamline translation workflows, reduce costs, and drive meaningful engagement across international markets.

Reagan White

Localization Expert

Reagan White is a localization expert with experience helping global brands streamline translation workflows and scale multilingual content. With a background in translation technology and international content strategy, she writes about localization automation, AI translation, and best practices for building efficient global operations.