August 2014
Beginner
427 pages
11h 40m
English
Content preview from The Guide to Entrepreneurship
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Entrepreneurial Timber ◾ 11
1.7 Risk Is a Four-Letter Word
In general, risk is the probability of loss or damage. In an entrepreneurial
sense, risk is the chance of losing invested capital. Thus, in a new venture,
risk is the very real possibility that the business will fail or be less successful
than projected.
Peter Drucker, the management guru, identied four types of business
risks:
3, 4
1. Risk that is built into the very nature of the business and cannot be avoided
2. Risk one can afford to take
3. Risk one cannot afford to take
4. Risk one cannot afford not to take
Generally, there are six major sources of risk in an entrepreneurial ve ...
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