Risks
Business: Cambridge International GCSE (2027 Exams), topic 1.3.7
Risks
The entrepreneurs that start businesses face a lot of risk. Some of the risks are:
Risk of failure
- Starting a new company is very risky as they are most likely to fail in their early days.
- They face the risk that consumers may not want to buy their product, especially if it is a brand new product.
Financial loss
- Starting a new business often requires a lot of investment. Failure can often mean a large financial loss for the entrepreneur.
Lack of security
- Entrepreneurs often lose the security that they had with their job in terms of a regular wage or salary.
- This means that if the business isn’t making any profit, the entrepreneur may have no money to live off.
Test yourself on Risks
What are the risks that entrepreneurs starting new businesses face?