ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -Entrepreneurs face multiple risks such as bankruptcy, financial risk, competitive risks, environmental risks, reputational risks, and political and economic risks. Entrepreneurs must plan wisely in terms of budgeting and show investors that they are considering risks by creating a realistic business plan.

Detailed explanation-2: -Competitive risk Often, entrepreneurs aren’t creating a new market-they’re entering an existing market that already has competitors. As a result, entrepreneurs are taking on competitive risk-the chance that their offerings won’t be able to gain market share because of alternatives.

Detailed explanation-3: -Business risk is the exposure a company or organization has to factor(s) that will lower its profits or lead it to fail. Anything that threatens a company’s ability to achieve its financial goals is considered a business risk.

Detailed explanation-4: -Self-doubt and uncertainty For first-time entrepreneurs, dealing with the uncertainties of the venture can be a tough task. The entrepreneurs can often feel ultimately responsible for the success or failure of their venture. There are also many detours and deviations from the initial plan.

Detailed explanation-5: -Managing cash flow. Finding your niche and marketing your value. Ineffective sales funnel. Competition. Lack of scalability. Overcoming red tape. Operational challenges. Entrepreneurial burnout. More items