The risks and rewards of business enterprise
All encounter a mixture of risks and rewards when setting up a business. The level of risks and rewards often depends on the entrepreneur, the type of business and what products they are selling. Entrepreneurs must weigh up the risks and rewards to decide whether an idea is worth it.
Business rewards may include:
- profit
- satisfaction and a sense of achievement from building something new
- being able to build a successful business
- receiving positive customer feedback and a good reputation
- being in control
Business risks may include:
- giving up job security to open a business
- risk of low sales
- risk of unexpected events and rises in costs
- financial loss
- business failure
