Entrepreneurs Are Risk Takers – No Risk Means No Gain
The idea of taking risks is included when the word entrepreneur was derived. Small business owners or entrepreneurs are believed to be risk takers. But if we are to look into this assumption closely, anyone could see that a new business owner is subject to the same risks as that of a person working for an average company. If the latter is not doing a good job of getting clients/customers and managing cash flow, he could lose his job anytime. He could also get laid off even before his retirement. As a matter of fact, working for a company could even be riskier sometimes.
Meanwhile, a small business owner may be placing his retirement funds at risk by venturing on a business. But almost everything in life involve a certain degree of risk. The same person may end up with a terrible ailment and may spend all the retirement money on health care. That same person can also let his money sit around and he may be risking not doing anything rewarding before he dies.
According to John F. Kennedy, the costs and risks of an action can sometimes be considerably lesser than the cost of inaction which may involve long term risks. The truth is, doing nothing poses a greater risk than becoming an entrepreneur. Calculated risks are what entrepreneurs take. With that being said, it means all the possibilities are being weighed and a business plan has been written which includes financial forecasts. An entrepreneur has a bigger chance of not running out of capital if he starts frugally and carefully. Only upon seeing a reasonable opportunity to succeed, a good entrepreneur will take the plunge.
An entrepreneur can be defined by many characteristics. Ambition always ranks first and perseverance ranks second on the list. But the risk taking capacity is a common characteristic shared by almost all entrepreneurs. With considerable risk and initiative, an entrepreneur usually organizes and manages enterprises especially a business. Risk is a very effective aphrodisiac to an entrepreneur.
The entrepreneurship literature has made risk taking a central theme for quite a long time. The main reason for this is the fact that engaging in risky events and decision making have always been consistently included in the activity lists of entrepreneurs. So if you are sitting around and planning to start a business, why not do it and take the calculated risk?