Question

What do you perceive to be the risks and rewards associated with entrepreneurship? What characteristics do you think would be important in a person who is considering becoming an entrepreneur?

Answer 1

Entrepreneurs face multiple risks such as bankruptcy, financial risk, competitive risks, environmental risk, reputational risk, 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. The four areas of risk are financial risk, career risk,family and social risk and psychic risk. First, financial risk deals with the amount of savings or resources that the entrepreneur puts into venture.

The risks and rewards of being an entrepreneur

• Relying on cash flow
• Sacrificing personal capital
• Interest in your product/service
• Trusting key employees
• Betting on a crucial deadline
• Committing personal time and health
• Emotional risk
• Risk of scaling

Rewards of being your own boss must be worth the risk

• Job satisfaction
• Higher wages
• Greater control
• Startup loans

The 5 rewards of being an entrepreneur is being the boss, doing what you enjoy, having the opportunity to be creative, building an enterprise, and developing your own schedule.

5 key characteristics every entrepreneur should have

• Passion- A startup founder is often driven by the quest for deeper purpose beyond the sheer mechanics of operating a business
• Perseverance- Entrepreneur need to be able to deal with obstacles
• Resourcefulness
• Open-mindedness
• Spongelike nature

Develop these 9 qualities of an entrepreneur to help set yourself apart from the average worker.

• Motivation
• Creativity
• Persuasiveness
• Vision
• Versatility
• Risk tolerance
• Flexibility
• Decisiveness
• Collaboration