StudentShare
Contact Us
Sign In / Sign Up for FREE
Search
Go to advanced search...
Free

Risk Takers and Risk-Neutral Entrepreneurs - Coursework Example

Cite this document
Summary
The paper "Risk Takers and Risk-Neutral Entrepreneurs" states that a risk-taker is bound to enjoy more success in his ventures than a risk-averse person. This is so, because, a risk-taker operates comfortably in a risky environment without necessarily taking caution, this binds him to succeed…
Download full paper File format: .doc, available for editing
GRAB THE BEST PAPER91.6% of users find it useful
Risk Takers and Risk-Neutral Entrepreneurs
Read Text Preview

Extract of sample "Risk Takers and Risk-Neutral Entrepreneurs"

In the entrepreneurial world, risk is categorized into three; risk-taker, risk-neutral, and risk-averse persons. All these exercise their activities in risky environments without necessarily taking into consideration the success or failure that the risk might bring forth.

Risk-taker A risk-taker is a type of entrepreneur who decides to involve oneself in a risky venture without necessarily taking into consideration the extent of the harm that the venture will cause. This type of entrepreneur is full of vigor and strength and is fully prepared to undergo all the necessary downfalls that are attached to the risk. A perfect example of this is an entrepreneur buying out a bond during an economic boom. In case of a chance of an economic downturn, the individual will incur a lot of risk and the net worth of his investments will be negative.   Risk-averse This is a type of investor who doesn’t like involving oneself in risky ventures. He knows and understands the possible outcome of indulging oneself in such activities. This does not guarantee success in any of his ventures. This type of individual prepares himself to take a risk in case of an option where risk is involved and there is no loophole for escape. He sets out steps to follow and possible procedures to take in case the risk binds him. 

Risk-neutral A risk-neutral person is neither a risk-taker nor a risk-averse entrepreneur; he operates comfortably in all environments and is fully prepared to face risk in case it binds him down. On the other hand, in case the risk doesn’t affect him, he emerges as a victor.

A risk-averse takes caution in everything that he, in case of taking risks to achieve success, and the risk-averse person does not comprehend. A risk-neutral entrepreneur operates comfortably in all environments.

Read More
Cite this document
  • APA
  • MLA
  • CHICAGO
(“Risk takers Coursework Example | Topics and Well Written Essays - 250 words”, n.d.)
Retrieved from https://studentshare.org/business/1632214-risk-takers
(Risk Takers Coursework Example | Topics and Well Written Essays - 250 Words)
https://studentshare.org/business/1632214-risk-takers.
“Risk Takers Coursework Example | Topics and Well Written Essays - 250 Words”, n.d. https://studentshare.org/business/1632214-risk-takers.
  • Cited: 0 times

CHECK THESE SAMPLES OF Risk Takers and Risk-Neutral Entrepreneurs

Personality Traits of Entrepreneurs

risk takers Risk is the likelihood that an action will lead to loss.... This study "Personality Traits of entrepreneurs" discusses the ability of the entrepreneur to cope in these circumstances that makes them great.... The resources are scarce, and entrepreneurs must allocate them in a manner that gives them the highest returns.... The two great entrepreneurs Stelios Haji Ioannou (Easy jet) and Richard Branson (Virgin Airlines) have been in the business front for a very long period....
8 Pages (2000 words) Case Study

Starting and Developing a New Venture

PROPENSITY TO TAKE RISK Most researchers suggest that efficient and effective entrepreneurs are restrained or reasonable risk takers.... Most entrepreneurs prefer a neither calculated move when it comes to risk and are neither risk averse, neutral nor risk loving.... Most entrepreneurs have a high locus but in most cases they are poor in delegating duties.... 8) GOOD LEADERSHIP Most entrepreneurs in the world have shown strong tendencies of building and engaging a strong team of hardworking and talented people who oversee duties on behalf of the owners....
8 Pages (2000 words) Essay

Entrepreneurial Action, Innovation, and Business Performance

The literature reviewed includes the common myths regarding entrepreneurship, common characteristics associated with entrepreneurs, how entrepreneurial behaviour affects business, and Anita Roddick's (of The Body Shop) view on entrepreneurial qualities.... The literature reviewed includes the common myths regarding entrepreneurship, common characteristics associated with entrepreneurs, how entrepreneurial behaviour affects business, and Anita Roddick's (of The Body Shop) view on entrepreneurial qualities....
9 Pages (2250 words) Assignment

To what extent is the enterpreneurship activity the domain of small businesses

The nature of these firms may be limited to an institution which is limited to the management of the owner or partner of the firm and there is no separation of the ownership and the firm thus the entrepreneurs who run the show at the show at these small businesses are at highest risk of personal liability.... ll business environment that helps them to reach and penetrate the market but despite their crucial significance, they have often not been made the headlines despite carrying significant risk and considerable number of failures....
4 Pages (1000 words) Essay

Personal Entrepreneurial Viewpoint

There are different types of energetic people just as there are various types of entrepreneurs distinguished by their association with business owner management, involvement with new technology, business, motivation, and growth orientation.... Efficiency and effectiveness have always dominated the entrepreneurship requirements, but creativity seems to be the core factor of success for entrepreneurs.... Successful entrepreneurs need an edge resulting from some combination of the creative idea and better capacity for execution....
5 Pages (1250 words) Essay

Entrepreneurial Self Reflective Analysis

This essay describes the entrepreneurial self-reflective analysis and analyzes some characteristics, that entrepreneurs share in order to become successful businesspersons.... The degree of difference in the various attributes separates the successful entrepreneurs from their peers.... Entrepreneurial self-reflective analysis Entrepreneurial self-reflective analysis Regardless of the diverse definitions of success, there are some characteristics that entrepreneurs share in order to become successful businesspersons....
7 Pages (1750 words) Essay

What Do We Know about Entrepreneurs

"What Do We Know about entrepreneurs" paper provides the perspective of a policymaker on the question of entrepreneurs with its opportunities and considerations why new ventures fail sometimes.... This review looks at the evidence of the available journal articles that support the notion of entrepreneurs and their impact on society.... What do we know about entrepreneurs?... The Journal of Management explains the factor of opportunities that modern entrepreneurs have today....
9 Pages (2250 words) Coursework

Concept of Entrepreneurship and Entrepreneurs

The paper "Concept of Entrepreneurship and entrepreneurs" is an outstanding example of a business literature review.... The paper "Concept of Entrepreneurship and entrepreneurs" is an outstanding example of a business literature review.... However, according to Nandan (2007), the differing views expressed as regards the number as well as the nature of individual characteristics needed to make competent entrepreneurs are open to question.... oncept of Entrepreneurship and entrepreneurs ...
5 Pages (1250 words) Literature review
sponsored ads
We use cookies to create the best experience for you. Keep on browsing if you are OK with that, or find out how to manage cookies.
Contact Us