Calculated Risk Taking

Calculated Risk Taking.

Creativity and Innovation cannot be separated from risk taking behavior because often time creativity and innovation have no 100% guarantee of success. Some may fail and some may succeed. There is always fear of failure and because of such fear, one can be discouraged to proceed with certain plan or program. Fear of failure is not the nature of entrepreneurs but he/she must be comfortable with uncertainties.

However risk taking behavior does not mean recklessness but it is calculated risk taking. Calculated risk taking means that the enterprising person is opportunistic and seeks information and expertise to evaluate if it is worth ursuing the opportunity which will usually involve some risks (Caird, 2013). Entrepreneurs are characterized by a propensity to take calculated risks. Entrepreneurs know by instinct that gains do not accrue to those who always play safe.

Entrepreneur who relentlessly pursues every possibility with little regard to available resources and the cautious entrepreneur who while taking some risks starting the business, may wish to preserve initial gains by taking calculated risks. Calculated risk means that risk have to be calculated ahead before proceed and see to it that such venture will not be totally a lost. Entrepreneurship is always associated with risk and risk – taking. One of the most important factors in the entrepreneurs’ success is their capability to take the risk. That is the only way in order to realize their ideas and dreams (Allah & Nakhaie, 201)9.

There are several kinds of risks that an entrepreneur has to face and they are: financial risk, job risk if he fails, social and family risk, and mental risk (Allah & Nakhaie, 2011). Financial risk will happen when the outcome of the venture does not make money. Job risk will be experienced if the venture does not prosper and it might be hard to go back to the old job. Social and family risk may occur particularly at the beginning of the undertaking which is time consuming. It can destroy family relationship. While mental risk is associated with future, and formulate fresh action plans to achieve their goals. This endless cycle of new information, new opportunities, and new action plans helps you start ventures or grow existing ones. Creativity is not given but it is acquired through training or education. It is a skill that an entrepreneur needs to learn and master. Desai (2006) contends that creativity is an important characteristic for an entrepreneur. It was also found that there is a relationship between creative tendency and business success.

Entrepreneurs ‘mind resolve  around new ideas and opportunities for innovation and for change. They continue to examine existing practices and devising ways in order to carry them out in a more efficient and effective way, in terms of both time and cost. In simple words, entrepreneurship works toward the optimization of business (Anastasia, 2015). They work toward optimizing resources and taking full use of them to create efficient processes. The whole process of entrepreneurship is rooted in creation and exploration of new ideas. When an entrepreneur is able to generate a new idea that is feasible as well as efficient, it gives him an edge over the competition.
Creativity helps us think of how to improve existing business practices. It can come up with the most unthinkable ideas and bring innovation into existing practices. Rentschler (2010)  in her study found that creativity is always associated with successful entrepreneurs future, and formulate fresh action plans to achieve their goals. This endless cycle of new information, new opportunities, and new action plans helps you start ventures or grow existing ones.

Creativity is not given but it is acquired through training or education. It is a skill that an entrepreneur needs to learn and master. Desai (2006) contends that creativity is an important characteristic for an entrepreneur. It was also found that there is a relationship between creative tendency and business success. Entrepreneurs ‘mind resolve around new ideas and opportunities for innovation and for change. They continue to examine existing practices and devising ways in order to carry them out in a more efficient and effective way, in terms of both time and cost. In simple words, entrepreneurship works toward the optimization of business (Anastasia, 2015) . They work toward optimizing resources and taking full use of them to create efficient processes. The whole process of entrepreneurship is rooted in creation and exploration of new ideas. When an entrepreneur is able to generate a new idea that is feasible as well as efficient, it gives him an edge over the competition.
Creativity helps us think of how to improve existing business practices. It can come up with the most unthinkable ideas and bring innovation into existing practices. Rentschler (2010) in her study found that creativity is always associated with successful entrepreneurs.