Entrepreneurship is as much of a staple in the United States as apple pie or baseball. Almost all businesses in the United States are, in fact, operated by entrepreneurs; nearly half of the nation’s employees are put to work by small-time entrepreneurs; these entrepreneurs’ businesses make up about 99.7 of the entire country’s business entities, which shows the country’s intense dedication to small businesses.
An inherent part of being an entrepreneur is welcoming risk into your life. Although risking it all can effectively put a self-employed businessperson out of business, shying away from any and all risk results in very low returns, poor levels of success, and general business failure. Without any further ado, here are several top-notch, solid reasons behind why every entrepreneur should take calculated risks.
You understand entrepreneurship
Remember this fact, that an entrepreneur who does not take risks is not an entrepreneur. The Merriam-Webster Dictionary makes clear that an “entrepreneur” is someone “who organizes, manages, and assumes the risk of a business or enterprise.” If you want to truly understand what it means to be an entrepreneur, you need to take risks.
Helps you stand out
Being risky will portray you as confident, in turn making it easier to stand out as unique among the crowd. While there are certainly other entrepreneurs who do not take risks, making sure you do helps set you apart from lazy entrepreneurs or just regular people.
Moderate risks bring great rewards
While taking risks is encouraged, don’t run with scissors, fall asleep with candles burning, or do other high-risk, zero-reward activities. However, never shy away from moderate-risk activities that have at minimum a moderate reward when it comes to your business.
Develop leadership skills
Further, entrepreneurs, at least the successful ones, are typically good leaders. Leaders are unique in that they often grab the first-mover’s advantage, an action that brings moderate success in countless scenarios. Leaders know the benefits of taking risks and aren’t afraid to do so.
Innovation involves risk-taking
Without innovation, humanity would never be fortunate enough to have new products. If there weren’t any innovation, there wouldn’t be social media, smartphones, global positioning systems, a polio vaccine; in other words, there wouldn’t be hardly anything we’ve come to take for granted available to us in society.
Some situations don’t call for innovation, but most of them will in the world of entrepreneurship.
Always remember that risk-taking isn’t totally blind – calculated risks are very real and you should use them
Calculated risks are exactly what they sound like – risks that won’t hurt much if they backfire but will return a moderate or substantial reward if everything works out like it’s supposed to.