ECONOMICS
PRODUCTIVE RESOURCES
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Question
[CLICK ON ANY CHOICE TO KNOW THE RIGHT ANSWER]
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Losing the money invested in starting the business
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Going bankrupt [losing everything]
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Not having a steady job/paycheck
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All of these are risks!
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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: -Those who take risks already have a competitive advantage Since most people tend to avoid risk, those who are brave enough to take risks already have a competitive advantage. Similar to the concept of a first-mover advantage, when most individuals stay away from risk, that means less competition for risk-takers.
Detailed explanation-3: -Entrepreneurship is an exciting path that individuals take for personal and professional growth but it is having some risks which can be in the form of financial risk, bankruptcy, environmental risk, competitor risk and economic and political risks. Also see: What is Entrepreneurship?
Detailed explanation-4: -Market risk. Factors affecting a market sector or the economy can impact new businesses, and aspiring entrepreneurs need to take these risks into account. Financial risk. Competitive risk. Technology risk. Career fulfillment. Work-life balance. Leadership experience. Company control. 02-Sept-2022
Detailed explanation-5: -Security and fraud risk. Compliance risk. Operational risk. Financial or economic risk. Reputational risk. 16-Jun-2021