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What are some of the risks in Entrepreneurship?

Entrepreneurs face a lot of risks as that's basically what entrepreneurship is based upon. An entrepreneur may arrive at product risk, not certain if the product/service will do as good as the market research states, as it is difficult to decide customers' minds as not all customers are loyal and might switch or change their minds at any time. An entrepreneur can end up in bankruptcy which is one of the many huge risks in entrepreneurship. According to data from the Bureau of Labor Statistics 20 percent of small businesses fail within the first year due to bankruptcy. Borrowing and investing too much money without the right market to gain back what's needed to make a profit for the business.

Another risk associated with entrepreneurship is the risk of competition (competitive risk). Competitive risk arrives from the fact that there are often competing companies on the market. Companies seeking to obtain the highest position and consumer ratings on it to gain maximum benefits for themselves. The action of competitive companies can negatively impact your business. One example of competitive risk is when more than one shoe store with similar quality shoes opens in the same area/district. Despite the negativity it brings, it has positive impacts. In a healthy competitive market , competitive risk drives improvement in cost reductions and quality improvements. This goes to show that entrepreneurship isn't only about risk but rewards arise from it too. I encourage all to become an entrepreneur as the rewards are beneficial and entrepreneurs are valuable to society’s economy. “The true entrepreneur is a doer, not a dreamer”.

[lets-talk-with-shania]

Who is an Entrepreneur?

Describing the qualities and characteristics of an entrepreneur is pretty easy but portraying and having the mind of an entrepreneur is where the real challenge, passion and dedication comes out. With that being said, who an entrepreneur is exactly? An entrepreneur is a risk bearer, a person who takes an act of investing or starts up their own business without knowing whether the outcome will be successful or unsuccessful. That act of not knowing the outcome (possibility) is called a risk. They start up the business based on an idea inside their head or a product/service they created, bearing the risks and enjoying most of the awards that come with it.

An entrepreneur is a person who starts a new business and usually risks his/her own money to start the venture or even borrow a large sum of money (loan) without knowing where the income to repay it will come from just in case the business doesn’t succeed. Entrepreneurs must have the ability and desire to establish, administer & focus on succeeding in startup enterprises along with risks attached to it, to make profits and this is where passion comes along. Entrepreneurs plays a key role in the economic field, using the skills, talent and intelligence necessary to anticipate the demand, meet the needs and bring good new ideas to the market.