ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Risk-taking enables and encourages innovation, which can be an important product/service differentiator. Failed risks aren’t always negative. Sometimes, they provide the most valuable business lessons an entrepreneur can learn. Failure helps shape future business strategies and can eventually lead to business growth.

Detailed explanation-2: -Successful entrepreneurship involves taking risks. Countless entrepreneurs have taken risks to get their businesses to where they are now.

Detailed explanation-3: -Measuring the risk In order to mitigate potential risks, an entrepreneur needs to measure a risk before he takes one. Most entrepreneurs specialise in risk weighting. They don’t lose much if the strategy fails, but if it succeeds, they benefit a great deal by taking the risk.

Detailed explanation-4: -Taking risks eliminates the possibility of looking back and asking, “what if?” Even if you fail, you’ll walk away with more experience and more knowledge, which can lead you to further success in other areas and at least one study shows that risk takers end up more satisfied with their lives because of it.