Entrepreneurs are those people who organises, manages and start a business assuming all risks involved in it. Entrepreneurs before starting a business takes into account all kinds of risks and rewards of business idea or venture. He takes risks in the hope of earning profits and can take benefits of a business venture. One of the essential feature an entrepreneur must possess is the ability yo bear risks. Assuming risks is the essence of entrepreneurship. New ideas, business venture involves a great deal of risks. Thus entrepreneur must be patient enough and manage the risks to enjoy the success of his business venture. The following are some of the ways through which an entrepreneur can manage or minimize his risks are :
- Before commercing any business an entrepreneur must conduct the feasibility study of the business idea. As it is very important to analysis the idea in terms of legality, economically and technologically.
- He should need to have a back up plan and should forecast the risks that may arise in future in order to reduce its effects.
- He should continuously look for new and innovative opportunity or ideas that can provide him a competitive edge.
- He should insure his risks as he may suffer from huge loss if business plan fails.