40% of restaurants go bankrupt within 2 years.
80% of businesses don’t last over 5 years.
Is it because entrepreneurs take too much risk?
I am convinced that entrepreneurs are no more risk takers than most employees.
Companies go bankrupt because not everyone who starts his/her own business is entrepreneur.
How do I do define entrepreneur?
Entrepreneur is someone who can see opportunity and is able to transform it into profitable and sustainable business.
Most people are employed because they don’t see the opportunities.
Some see them, but they don’t see them as something they would like to pursue
or is worth pursuing. And there are some who see them and give it a try but are not able to transform it into profitable and sustainable business.
Being entrepreneur I don’t consider myself a risk taker.
And I can’t really take risks.
I have responsibility for my employees, my family and towards our customers.
Out of opportunities I see, I only take ones I know I can transform into profitable and sustainable business.
Employees on other hand don’t deal with their money and are basically not responsible for anything.
Hence higher chance for taking unnecessary and not calculated risks.
If things go wrong, they may even be promoted if they sell it good internally.
Risk taking is not essence of entrepreneurship.
Seeing opportunities and having ability to turn it into profitable and sustainable business is.