7 TYPES OF RISKS EVERY ENTREPRENEUR MUST BATTLE
Being a Entrepreneur is not an easy task , as there are various types of risk factors which are involved in it. Every business either it is big or small the entrepreneur has to face lots of risks. So, to battle with these types of several risks factors entrepreneur must understand these factors first. Find several risks of being an entrepreneur.
Risks of Being an Entrepreneur There are mainly 7 types of risks involved which are mentioned below: 1) Competitive Risk 2) Technological Risk 3) Economical Risk 4) Financial Risk 5) Strategic Risk 6) Health and Safety Risk 7) Market Risk
1) Competitive Risks: This is a type of risk that every business faces from its rivals. It is because substitutes to every business is easily available in the market. New business has to face this type of risk to a higher extent as they have to face the competition with the already established business. This type of risks can be minimized if a entrepreneur can seek the patent policy for their products and services. 2) Technological Risk : Every business has to face the technological risks as technology changes day by day with a rapid pace. So it is difficult for the entrepreneur to gauge the future properly. To be competitive, a new company may have to invest heavily in new systems and processes, which could drastically affect the bottom line.
3) Economical Risk : This risk includes the changes in the cycle that includes periods of high prosperity (boom) and recession. These cannot be predicted correctly and must be taken into account at the planning stage. 4) Financial Risk: This type of risk arises when your business runs out of the finance. So to avoid this type of risk one should have a good sense in order to run the business successfully. 5) Strategic Risk : Strategic risk is the risk of a strategy failing due to one reason or another. Future is uncertain and cannot be predicted correctly. So your pre strategies cannot work every time. Entrepreneurs need to have a good foresight so that they can plan properly
6) Health and Safety Risk: This risk involves how a business functions. It is a responsibility of a business person that his employees should work under the safe and healthy environment. So that there is no health hazard. If a company fails to practice this then it may lead to injured workforce that may trigger a lawsuit for the company. 7) Market Risk : The selection of an inappropriate pricing, marketing, or distribution strategy is a large potential risk. Entrepreneurs should perform a market analysis that assesses market factors, the demand for a product or service, and customer behaviour.
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