Explain The Meaning of Risk Taking

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.