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What is entrepreneurial risk?

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What is entrepreneurial risk?

Many young people dream of an entrepreneur's career.

At the same time, entrepreneurial activity is a complex work connected with risk and responsibility.

What is this risk?

Cash risk

Although an active entrepreneur carries a hugeThe number of risks almost every day (many do not depend on him), the largest society sees money risk. Most entrepreneurs produce goods, services or information products. Demand for them may fall, then the infusion of funds into the enterprise will decrease. There will be nothing to pay salaries, rent costs, pay loans. The enterprise can go bankrupt.
Legislation of different countries in different waysRefer to the procedure of bankruptcy. If in the United States and Great Britain the governments are relatively loyal to bankrupts, in a number of eastern (Iran, Vietnam) bankrupt can be imprisoned.
To protect against bankruptcy can help a reasonableHandling of cash flows (reduction of debts, increase in assets purchase of real estate and securities). If an entrepreneur is allowed funds, it is desirable to find a good financier who can protect the company's profit by a reasonable monetary policy.

Health

The risks of the entrepreneur in relation toHealth. The businessman has to communicate with employees and clients. The fate of the enterprise directly depends on it, it is responsible for providing the company with cash. This responsibility can seriously damage the nervous system. Business people often suffer from problems with the cardiovascular system.

Relations with loved ones

People working in a foreign system areIt is not easy to understand businessmen. Some consider the latter "freeloaders" sitting on the neck of the working class. Especially often people with such convictions are found in countries with a socialist (post-socialist) system. Because of misunderstanding, problems can arise even in the strongest families.
Force majeure, a shortage of cash,Invasive partners (customers) can invade the privacy of business people. This sooner or later affects family relationships. It is advisable to report your problems to the family, leaving work outside the house. Call home to reduce to a minimum. Tension due to work problems can completely deprive the rest of both the entrepreneur himself and his loved ones. This, in turn, can lead to the disintegration of the family.

Reputation

One unsuccessful film can break the career of an actor. Similarly, fraud, management miscalculation or force majeure can put an end to the reputation of an entrepreneur. It may seem that nothing terrible will happen - you can find new suppliers, customers or partners. However, in the Internet era and the dominance of the media, a tarnished reputation is a black mark for the creator of projects. Protection from scandals and failures of reputation consists in openness and honesty both with partners and employees, and with clients. Willingness to admit their mistakes, apologize: one of the most important qualities of a successful businessman.

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