The notion of starting one’s business is quickly gaining favor of millions across the globe. In the hopes of generating higher profits, countless individuals intend to choose the path of entrepreneurship. However, entrepreneurship is more than just having an idea of establishing a start-up that will eventually lead to success. Instead, one has to come to terms with certain realities to brace the barrage of challenges that entrepreneurship throws your way.
This week we will speculate on realities that are elementary to entrepreneurship and will try to understand what makes tolerance for risks and failures the hallmark of a serious entrepreneur. The following account exploits the reasons that make risks and failures intrinsic to entrepreneurship.
Risk and returns are the building blocks of an economy and the biggest truth associated with entrepreneurship is that it is about risks and failures that are germane to any start-up business. The beauty of entrepreneurship is that it is one of those business areas where there are no risk-free, failure-proof paths that are available.
While research has proved that the risk of failure is often the biggest deterrent that prevents individuals from starting their own businesses, there is a fear that less qualified individuals will seek entrepreneurial opportunities due to such aversions.
Entrepreneurs with the true spirit are individuals who perceive risks and failures differently. They don’t fear uncertainties, instead they embrace them. They are not afraid to go against the current. Rather, they maneuver their path around hurdles and obstacles and come out victorious. This brings to mind questions like, does risk taking imply success? Is entrepreneurship only about risk taking and nothing else?
Risk-taking in the context of entrepreneurship is often interpreted incorrectly. No entrepreneur, no matter how seasoned he/she is, will advocate blind risk-taking because one simply does not become an entrepreneur by going on a blind adventure.
Similarly, making decisions imprudently without taking into consideration the consequences is not an appreciated practice either. Such desperate measures have a considerably high propensity to lead to catastrophic failures.
An entrepreneur is one who is willing to tread into areas that others view as a threat. He/she stays focused on opportunities and while he/she is not oblivious to the possibility of failure, he does not let fear overcome his desire to create success. What looks like reckless risk-taking to others is actually a well-crafted recipe of success where all the risks and possibilities of failing have been thoroughly assessed. This way, what an entrepreneur goes for are calculated risks.
While it is only normal for individuals to mitigate most or at least some of the risks, such people are rarely successful entrepreneurs. This approach may pay off once the company is planning to expand but not when it is still in its infancy.
Unlike others, what distinguishes entrepreneurs from business owners is that they go ahead with their plans even when the risks are unidentified and unresolved, and stop at nothing but success. They change their direction but do not wait for their obstacles to vanish miraculously. They pave their path around their obstacles. Entrepreneurs are of the mindset that it is important to identify risks and then address them as they move along. They believe in settling just enough issues that their movement ahead is not hindered.
When it comes to failure, entrepreneurs are not crippled by it because it is a very rare occasion when an entrepreneur does not have a plan in case of failure. These individuals refuse to succumb to any disheartening effects of failure and are ready to start all over again because they believe in the competency of their ideas.
One seldom realizes that any venture has a higher probability of failure and that it is not that easy being an entrepreneur. Failure to identify the risks not only stifles the promotion of entrepreneurship, it also discourages individuals from trying ever again.
It is imperative to understand that failure is actually a learning process and one has greater chances at success after failure because not only will you have a better picture of why you failed, you will also be more realistic and practical about your strategies in the future.
Culture also influences risk-taking as the perception and treatment of failures varies from nation to nation. For instance, countries where cost of living is high, failure can be problematic or even too painful. On the other hand, entrepreneurship thrives in economies where it is easier to pick oneself up and make things work with more frugal alternatives.
Do not let risks or failures keep you from pursuing your dreams. There is no business where you can succeed without risks or failures. At the end of the day, it is the ability to reduce risks and manage failures that matters and this is what makes you a true entrepreneur at heart.