One gentleman by the names Henry Kravis once said; ‘A real entrepreneur is somebody who has no safety net underneath them.’ Now, you may or may not agree with this – and that is your business anyway – so I won’t interfere with your judgment. But I guess you appreciate one element that sometimes makes an entrepreneur very exposed – that is business risk. Occasionally when you meet a person who has a skewed idea about this thing called ‘business risk’, you just see someone who will not invest a dime, no matter what language you use to entice him or her to invest. Haven’t you met such? And yet there are also guys outside there that are attracted by risky ventures. But what must an entrepreneur know about business risk?
In summary, it’s vital for an entrepreneur to know some key facts about business risks. Many aspects of enterprise management are associated with risks. Investing resources, procuring machinery, production, engaging personnel, launching into new markets, researching and developing new markets etc all have elements of risk in them. As a wise entrepreneur, you should strive to understand and manage risks – otherwise risks will manage you – and eventually you will become a risky entrepreneur. Try and thrive on calculated risks. Millions of individuals and enterprises have done it and they have been successful – what about you? You are not a failure – or are you?
The Wise Entrepreneur