Entrepreneurial learning, Vol. 2 No. 1, 2012.
Original scientific paper
Meaning of Risk as a Part of Entrepreneurial Competences
Mirko Smoljić
; Ministarstvo znanosti, obrazovanja i sporta, Zagreb, Republika Hrvatska
Abstract
The meaning of risk is one of the main characteristics of entrepreneurial competencies and the critical point that may affect the decision of entrepreneurs to start their entrepreneurial venture. Entrepreneurial competencies can be learned, developed and perfected, but an inborn sense and courage in taking the entrepreneurial risk of some people over others is often very different. Past experience and new knowledge can reinforce a sense of risk, because in this way an entrepreneur can realistically look at the expected risks in the business enterprise. As risk is the possibility of negative result in some activities, the entrepreneur is faced with four types of risk: financial, risk of career management, family, social and psychological risk. Since entrepreneurship is a unique profession characterized by risk-taking, many attempts are made to measure this risk and some studies link gender, cultural background, development level and kind of business with its propensity to risk.Approach to development of work in a particular life cycle reveals that the risk appetite changes over time so that managers with previous experience take less risks and are more prone to increased caution. Uncertainty is a risk that can not be predicted or controlled, because for example, changes in demand, changes in government policies, global trends and, consequently, profits and losses, carry with them unforeseen risks arising from cyclical, structural changes in economic policy.
Keywords
entrepreneurship; entrepreneurial risk; entrepreneurial competencies
Hrčak ID:
130185
URI
Publication date:
1.6.2012.
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