ECONOMICS
ENTREPRENEURS
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Recession /economic / political problems and instability
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Poor reputation which can lead to loss of sales, loss of revenue and loss of profitability
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Commercial risks, failure of suppliers to supply and customers to pay
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Better work/life balance
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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: -Which of the following is NOT considered a risk of being an entrepreneur? Providing value to others is considered a benefit of being an entrepreneur, not something you have to risk.
Detailed explanation-3: -There are five kinds of risk that entrepreneurs take as they begin starting their business. Those risks are: founder risk, product risk, market risk, competition risk, and sales execution risk. Founder risk considers who the founders of the company are, if they get along, and how they will work for the company.
Detailed explanation-4: -Entrepreneurs thrive on hustle culture-it’s what keeps them going when times are tough. But it can also quickly lead to burnout and even mental health issues if the problem isn’t addressed early on. That’s why work-life balance is so important for entrepreneurs.