Risk Management among Startups - Strategies & Solutions

Authors: Dr P S Subha Prada

Country: -

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Abstract: In the process of designing, launching and running a new business, entrepreneurs world-wide are exposed to numerous risks. Entrepreneurship is associated with the capacity to and willingness to develop, organize and manage a business along with any of its risks to earn a profit. While most budding entrepreneurs focus on the launch and running of a business, they fail to take a note of significant risks that may lead to losses and ultimately a business shutdown.

Owing to the novelty of business startups and the impact of these ventures on economic growth and sustainability, contemporary entrepreneurs are investing significant resources in terms of time, money and effort on the management of risk in their businesses. Entrepreneurship is often associated with true uncertainty, particularly when it involves the creation of a novel good or service, for a market that did not previously exist, rather than when a venture creates an incremental improvement to an existing product or service.

To gain a competitive advantage, entrepreneurs cannot just acknowledge the risk of a business but must also efficiently manage risk. However, the business plans of many entrepreneurs lack clarity on various operational risks their new enterprises might face. By incorporating risk management into the planning process, the entrepreneur gains a better understanding of the business system and has a tool for analyzing and managing various operational risks. The present paper explores the inherent risks in a business and the integration of risk management with entrepreneurship for the success of business.

Keywords: Risk Management, Entrepreneurship, Operational Risk

Paper Id: 1241

Published On: 2018-02-28

Published In: Volume 6, Issue 1, January-February 2018

Cite This: Risk Management among Startups - Strategies & Solutions - Dr P S Subha Prada - IJIRMPS Volume 6, Issue 1, January-February 2018.

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