Situation Risk for an entrepreneur

Posted by Imam Larh on Tuesday, 6 March 2018

Risk situations are situations where we are faced with two or more options and we can not know the outcomes to be gained from any alternative choice. The risk situation also contains two potentials for the company, namely potential failure and potential success. An Entrepreneur who must always make decisions in various situations even though the situation is full of uncertainty. 

The decision to be chosen can be an alternative that contains conservative risk or alternatives, depending on the attractiveness of each alternative, the extent to which an entrepreneur is willing to lose, predict the success and failure that will be experienced, and how far an entrepreneur can increase the likelihood of success and reduce the possibility of failure. In the execution of decision-making, there are daring, some are not daring in taking risks on the decision

made despite the possibility of potential success of the decision made. There are also very courageous in taking decisions without prior consideration, quickly take decisions that he considered a golden opportunity. Entrepreneurs like these are entrepreneurs who are influenced by the amount offered and are deeply attracted by the high expectations of high returns with little effort. 

A true Entrepreneur is one who is not afraid to take risks that also not rash in making decisions. Decisions are taken always based on prior consideration.

Another important element of a risky situation is a willingness to accept personal responsibility for the consequences of decisions, whether profitable or not. Most entrepreneurial traits are interrelated, especially regarding risk-taking behavior, such characteristics are:
  1. Risk taking is related to creativity and innovation and is an important part of turning Ideas into reality.
  2. Risk taking is related to self-belief. The greater the confidence in the capabilities it has, the greater the confidence it has in the ability to influence the outcome of the decisions to be made and the greater willingness to take risks.
  3. Realistic knowledge of self-ability will be limiting
activities that will be taken so that will not produce a decision that is not able to be implemented. Once again, the risk situation occurs when an Entrepreneur is asked to make a choice between two or more alternatives whose results are unpredictable and must be objectively assessed.

As a risk taker, you must take a decision in a situation of uncertainty, while considering the likelihood of success and loss. Whether to choose an alternative that takes a risk or a conservative alternative depends on:
  • The attractiveness of each alternative,
  • How much you are willing to lose,
  • The possibility of relative success and failure,
  • How far you can / are able to increase the likelihood of success and reduce the possibility of failure
There are several characteristics of an entrepreneur that are interrelated, this tends to apply to behavior in taking risks. These links include:
  • Risk taking is related to creativity and innovation that is an important part of turning ideas into reality.
  • Risk taking is related to self-belief.
  • Realistic knowledge of your own abilities is also important.
Risk Taking The Entrepreneur is a calculated risk taker.
They are passionate about challenges. Entrepreneurs avoid low-risk situations, no challenge and stay away from high-risk situations because they want to succeed. They love the challenges that can be achieved.
  1. Entrepreneurs like to take real risks because they want to succeed.
  2. They get great satisfaction in performing difficult, but realistic tasks.
  3. Entrepreneurs love a difficult but achievable challenge.
  4. Increasing the size of your company will multiply and complicate your problems.
Entrepreneurs like to take realistic risks because they want to succeed. They have great satisfaction in performing difficult but realistic tasks. Entrepreneurs love a difficult but achievable challenge. Most people are afraid to take risks because they want to be safe and avoid failure.

However, all stages of work there will be no risk. Risk taking is an essential part of an Entrepreneur. If we have taken a decision from one of the alternatives, then this means we have decided to set aside other alternatives for not being used in the execution. In decision-making from selected alternatives based on the consideration that in its implementation later expected this closely related to the desire to be suffered or risk.

Personal Risk Taking
Risk taking is essential in realizing the potential as an Entrepreneur. An Entrepreneur must be aware that growth comes from taking the opportunities of the present and taking risks to achieve goals. Some of the most important risks are risks that bring us as an Entrepreneur to learn something new about yourself and your company.

Personal risk situations should challenge your ability and capacity in earnest. It is a difficult thing for an Entrepreneur to distinguish personal goals and business goals because the company is part of his life.

Decision-making is an important part of personal growth also useful in carrying out business activities. Taking personal responsibility for the actions taken will reduce your dependence on others. Entrepreneurs are responsible people because they have the power and ability to define their own future. Risk will arise when an Entrepreneur accepts responsibility for his decisions and actions.

As an Entrepreneur, we should not take unnecessary risks and should be able to master our emotions in taking risks if the benefits are estimated to be equal or even greater than the risks involved. In some cases, we must use intuition to assess what actions are at risk because intuition will help determine the extent to which risks and outcomes may be obtained.

In taking a personal risk should note the following:
  • Personal experience during this time in taking risks associated with the people closest
  • In some instances, it is also necessary to use intuition to assess what actions are at risk. Your intuition will help determine the extent of the risks and possible outcomes.
  • You are responsible for everything in your life, including your own successes and failures. But success can be gained more easily if you are willing and able to take the necessary risks with full calculation.
Typology of Risk Taking
At lower levels, companies need skilled workers to do routine things, which have little risk. In order for our company to grow, we must have the resources included in this type of risk taker because their behavior will be predictable and bring stability to the company. At the middle management level, there are more possibilities for risk-taking. 

Middle-level managers must have more freedom to innovate and make small changes in procedures and functions. The people who are here are considered risk takers. While Entrepreneurs are at the top level in the company structure, which must have the ability to formulate and apply creative ideas to succeed in business
and realize their ideas come true.

Some Entrepreneurs can be called practitioners because the company grows based on the control and direction of the self-entrepreneurs themselves. Entrepreneurs who develop their business practices for being results-oriented and reasonably confident of their ideas to dare to accept risks for the realization of the idea. 

But they are also quite practical to realize its limitations and will limit activities. Very creative and innovative entrepreneurs are usually moderate risk takers. They are willing to accept
change, try different alternatives and develop innovations for goods and services in new business areas. 

The highly innovative entrepreneurs usually become the characters in the business, they have ideas and are able to find combinations of people and other resources to realize their ideas.

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  1. It is really a nice and useful piece of info. I am glad that you shared this useful information with us.
    Please stay us informed like this. Thank you for sharing.

    1. you're welcome guys!!
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