Explain the concept of `Risk Taking’ with respect to entrepreneurship.
- As future is uncertain the entrepreneur has to take risk.
- If the venture succeeds, the entrepreneur profits, if it does not, losses occur.
- Thus risk forms an important entrepreneurial function.
- Risk may be insurable or non-insurable.
- The non-insurable risks are called UNCERTAINTIES.
- The entrepreneur makes use of his initiative skill and good judgment to reduce the uncertainties of business.