business risk and reward

• Entrepreneurship


  Running your own enterprise
• Risks of entrepreneurship


  • Financial loss
  • Lack of security
  • Business failure
• Rewards of entrepreneurship


  • Profit (financial reward)
  • Success
  • Independence
• Successful entrepreneurs are good at weighing up risks and rewards
• Entrepreneurs take calculated risks where the reward seems to outweigh the risk involved
• Financial loss


  • Losing investment when business fails
  • Inability to repay loans
• Lack of security


  Loss of set wage, shift patterns, holiday and sick pay
• Business failure


  • 20% of small businesses fail within 1st year
  • 30% fail within 2 years
  • 50% fail within 5 years
• Most business failures come down to revenue and not having a healthy cash flow
• Profit


  Making more money than working a 9 to 5 job
• Successful entrepreneurs


  • Jeff Bezos (Amazon)
  • Elon Musk (Tesla, SpaceX, Neuralink, The Boring Company)
• Rewards of entrepreneurship


  • Seeing an idea become a successful business
  • Positive customer feedback
  • Growing reputation and revenues
  • Becoming a trusted brand
• Independence


  • Freedom from a boss
  • Ability to pursue passions
  • Control over working hours and decisions