Entrepreneurial Spirit and Risk Management

Entrepreneurs really are different people; they think differently and see things differently than the rest of us. So what makes an entrepreneur so different from the rest of humanity? Well, for one thing, they tend to be charismatic people who see opportunity where few do. Additionally, entrepreneurs are not afraid to fail. This may seem odd; to link an entrepreneur with failure, but in essence it makes perfect sense. Business is a finicky thing and we know, through statistics, that one in every five business ventures inevitably fails. Most people may start a business and work hard at it until the business environment changes or the business simply does not take off. At this point, most people would throw in the proverbial towel and “get a real job,” but this is certainly not the case with entrepreneurs. These gifted business people view failure as a part of doing business and, rather than being discouraged to the point of quitting, they manage to bypass the failure and move on to the next business opportunity: They understand the game of statistics and realize that the more you play the better the chances are for success. This innate ability to not give up is a hallmark of the entrepreneurial spirit. Entrepreneurs are visionaries that can, metaphorically, see into the future. In fact the main difference between a “mom and pop” shop and a chain store is the vision of the founding individual. Whereas a small business owner will be content to do business and generate revenue the entrepreneur begins their quest with the idea of expanding the business and growing it into a franchise or a chain. This vision of grandeur is another hallmark of the entrepreneurial spirit. Another key aspect of entrepreneur is their understanding of networking. By using their people skills entrepreneurs can align themselves with individuals that can help them grow their ideas into a profitable business.

Believe it or not there is a little entrepreneurial spirit in every person. So what keeps us from starting a business or having visions of grandeur? Simply stated the word is risk, or our inability to accept risk. This is not anything new as each of us has a risk threshold that we are willing to accept; a certain amount of risk that we are willing to take. Obviously, the younger you are and the less financial commitments you have the greater the amount of risk you will be willing to undertake. It is more difficult for a person with a family, a mortgage, and car payments-for example-to walk away from their job to begin a business venture. In such cases it is advisable to compromise between your entrepreneurial spirit and your yolk of responsibility. In fact, many individuals find that by starting small part-time ventures they can have the best of both worlds. In this particular case, they can satisfy their need for business adventure while playing the role of responsible adult. If their part-time business venture takes off, they can drop the 9 to 5 job or if the business ventures tank, they can still meet their financial obligations. Either way, this compromise helps to mitigate the risk. By setting limits to your risk level you can achieve the same results as entrepreneurs and over time be as successful.

Of course in order to bias your success it is prudent to do a little background research before setting out on a business venture. It is important to understand the business environment including competitors and market niches. Before starting any venture you should outline a business plan to ensure your success as well as the success of your business venture.

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