Uncertainty and Risks in Entrepreneurship Essay

Uncertainty and Risks in Entrepreneurship - Essay ExampleWhen operating a small seam try it is imperative to reflect on the factors that influence both the intragroup and external environments of the business. The failure to observe the internal and external environments will render the functioning of a business system useless. This is because the small business enterprisingness will occasionally face obstacles in the daily operations and heed. This paper discusses how the ability to cope with suspicion and to take risks affects the operating environment of a small business endeavor. Small business enterprises nowadays be on the rise. Individuals take developed the urge of operating businesses that will bring them extra cash to supply for their ever-increasing needs. However, operation and charge of any small business enterprise is not an easy task, as it requires an individual(a) with skills, attributes, determination and disciple. It is imperative for an individual opera ting a business enterprise, to have the above elements since they will alleviate when the time of facing the internal and external environment comes. In essence, taking risks and coping with irresolution ar matters that are associated with the internal and external environment of a small business enterprise. ... Managers cope with uncertainty in a reactive manner by developing adaptive strategies to counter the effect. This is so since they are beyond the immediate control of the business enterprise. As much as uncertainty is beyond the control of an individual, business enterprise, it still influences the daily operations and management of a business enterprise. Examples of uncertainties are external factors such as the economy, government policies and demographics. In most occasions, uncertainty affects a business enterprise negatively. Individuals who have taken the management role in any small business enterprise should apply a positive management attitude when coping with un certainties. Uncertainty is unpredictable and un evaluate, and that is why only the individuals with management skills and positive attitudes can have the ability to cope with uncertainty. A manager may think that he, or she has everything pertaining to a business enterprise in control, but uncertainties in the form of government policies, competition, economical shifts and demographical changes can prove wrong a managers initial judgment (Gigerenzer 2008 34). The first factor that can be a large uncertainty is government insurance. It is likely that at times, the government can come up with an unexpected policy that will ultimately affect the operations of a business enterprise. A skillful manager is expected to develop coping strategies that will end up minimizing the disadvantages while maximizing the advantages, which are part the uncertainty that has been brought by the government policy. For example, government policy can entail increasing or decreasing taxes on a commodity t hat the business enterprise in question is selling.