Risk and Entrepreneurship

I think a misconception about business entrepreneurship is that it entails a tremendous amount of risk at the outset.

Particularly when I talk to folks from non-entrepreneurial cultures overseas, their stereotype of entrepreneurs is crazy people who bet the farm and max out their credit cards.

While I don’t dispute that many entrepreneurs are crazy, I do dispute that they bet the farm in a wink. In fact, I think the best entrepreneurs are really good at mitigating risk. They are really good at compacting the risk into baby steps such that they can gauge the consequences of each action and decide whether to continue forward.

Yes, a higher-than-average risk tolerance is probably common among entrepreneurs, but it’s not as high as many people seem to think. The media glorifies those who wipe out their personal savings, quit their job, and stake their career on their new business and yet, I personally don’t know many successful entrepreneurs like this. Do you?

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