Why do entrepreneurs love to take risks?
For new entrepreneurs, taking risks goes hand in hand with daily operations. Regardless of the size of the risk, there are no hard and fast rules about entrepreneurship and risks are almost mandatory in order to be one step ahead of the competition. This is not to say that taking risks without prior calculations is advisable. There is a lot of underlying motivators behind a risk. Discussed below are some of the most prevalent reasons new entrepreneurs can find themselves drawn into taking risks in this modern day business world.
- Risks and Calculations
When making a major business decision, it is imperative to calculate the possible results and have eventuality scenarios already prepared beforehand. Even though there are accomplishment stories of industrialists taking decisive risks, no risk should see a business face a situation that hasn’t been prepared for. Calculated risks are a staple part of being a successful entrepreneur.
- The bigger the risk the better the eventualities
For most entrepreneurs, a risk is almost like a forked road. Which turn is the best for the business? These lingering thoughts of ‘What if?’ is a great motivating factor. Risks are often the perfect means to advance businesses. Regardless of how much calculation one puts into it, there’s no way to fully guarantee that a risk will pay off in the future, but, there is only one way to discover these promising possibilities – taking risks.
- It comes naturally to leaders
In general, most entrepreneurs are inclined towards taking risks as it enables them to differentiate themselves from their business rivals. In this highly competitive business atmosphere that is built to thrive off competition, it is those leaders who are enthusiastic to risk positioning themselves as thought and opinion leaders, who proudly get to stand out. If we take a moment to analyse history, almost every great entrepreneur has taken risks early into their careers. For instance, the legendary investor Warren Buffet invested in bubble gum products at a time when they were non-existent in the market. He clearly had the oversight to see a future that his peers at the time didn’t.
- Risks and innovation go hand in hand
Innovation cannot happen unless there is a degree of risk involved. Any change to how things function at the workplace is essentially a risk – be it making a big decision such as investing in the most advanced infrastructure in the industry or making small decisions such as having scheduled work on weekdays. Only those taking risks and going the extra mile can find out how far the road ahead is. And innovating is the best way to learn from new situations and essentially lead the company into unchartered territories.
Risks are essentially ideological decisions – one can either see it as jumping off a cliff or as a new door into the world of opportunities. With the right workforce and the right attitude, calculated risks can be fuel for a new company. In other words, calculated risks enable businesses to face new challenges, and emerge as winners in the long run.
Summary
Entrepreneurship and risk taking are almost synonymous in the present day business world. There are several reasons why true entrepreneurs love to take risks. While taking risks can open the door to new innovations, calculated risks also help to explore the best opportunities for your business. Risks also bring out the leadership qualities of entrepreneurs.
Reshali Balasubramaniam
Head of HR, HR Counselor and adviser at https://work.lk/. Do you offer a Service? Signup for an account at work.lk