Many young people dream of a career as an entrepreneur. At the same time, entrepreneurial activity is a complex work associated with risk and responsibility. What is this risk?
Monetary risk
Although an active entrepreneur carries a huge number of risks almost every day (many do not depend on himself), the biggest society sees the money risk. Most entrepreneurs produce goods, services, or information products. The demand for them may fall, then the infusion of funds into the enterprise will decrease. There will be nothing to pay salaries, rent expenses, pay off loans. The enterprise can go bankrupt.
The laws of different countries relate to the bankruptcy procedure differently. If in the United States and Great Britain the governments are relatively loyal to bankruptcies, then in a number of eastern ones (Iran, Vietnam) a bankrupt can be imprisoned.
To protect against bankruptcy, prudent cash flow management (reducing debt, increasing assets by purchasing real estate and securities) can help. If funds allow the entrepreneur, it is advisable to find a good financier who can protect the profit of the enterprise with reasonable monetary policy.
Health
The health risks of an entrepreneur are also great. A businessman has to communicate with employees and clients. The fate of the enterprise directly depends on him, he is responsible for providing the company with cash. Such responsibility can seriously hit the nervous system. Business people also often suffer from problems with the cardiovascular system.
Relations with loved ones
It can be difficult for people working in someone else's system to understand businessmen. Some consider the latter to be "freeloaders" sitting on the neck of the working class. Especially often people with such convictions are found in countries with a socialist (post-socialist) system. Misunderstanding can cause problems even in the strongest families.
Force majeure, lack of cash, annoying partners (clients) can invade the privacy of business people. This sooner or later affects family relationships. It is advisable to communicate your problems to the family, leaving work outside the walls of the house. Home calls should be kept to a minimum. The tension over work problems can completely deprive both the entrepreneur and his loved ones of rest. This, in turn, can lead to family breakdown.
Reputation
One bad film can ruin an actor's career. Likewise, fraud, miscalculation of management or force majeure can put an end to the reputation of an entrepreneur. It may seem that nothing terrible will happen - after all, you can find new suppliers, customers or partners. However, in the era of the Internet and the dominance of the media, a tarnished reputation is a black mark for the creator of projects. Protection from scandals and failures of reputation lies in openness and honesty both with partners and employees, and with clients. Willingness to admit mistakes, to apologize: one of the most important qualities of a successful businessman.
