Unit 4

Concept of Stress
• Stress is the reaction when
people have excessive
pressures or other types of
demand placed upon them. It
arises when they worry that
they can’t cope.
• The extent to which
entrepreneurs’ work demands
and expectations exceed their
abilities to perform as venture
initiators, they are likely to
experience stress.
• S = P > R Stress occurs when
the pressure is greater than
the resource.
 Causes/Sources of stress in Tourism
• Loneliness
• Immersion in business
• People problems
• Needs to achieve
 Loneliness
• There’s the heightened threat of
failure, for one, because with lean
teams and limited finances, smaller
companies are more exposed to a
late payment or the loss of a key
client.
• In the Self-Employment
Review conducted by Julie Deane,
the founder of Cambridge Satchel
Company in the UK, isolation was
cited as one of the biggest challenges
faced by business owners and sole
traders, with almost 30 percent of
respondents saying that it was either
“a big problem” or “something of a
problem”.
• Working from home can be isolating,
and often self-employed
freelancers miss the social interaction
and sense of community in the
workplace.
 Immersion in business
• An Immersion is designed
just to look at a very specific
problem, question or event
to identify the root cause,
along with the resulting
symptoms that are causing
challenges to business
prosperity.
• becoming totally immersed
in a project gives high
concentration of time and
effort which ultimately
cause stress.
 People problems
Some of the most common people
problems causing stress are:

• A salesperson that doesn’t bring

in new business.
• The staff member that likes to
bring personal drama to work
every day.
• Someone with a poor work ethic.
• The employee that makes a lot
of mistakes.
• Someone that resists change.
• The once fabulous team member
that has slipped into mediocrity.
 Needs to achieve
• It’s an individual’s desire for
significant accomplishment,
mastering of skills, and
attaining challenging goals.
• Entrepreneurs might hold a
high need for achievement, as
building a business from
scratch demonstrates one’s
individual abilities in ways that
are often hard to match when
working within a system in
which responsibility is diffuse.
• Hence cause stress if not
achieved.
 Dealing with Stress
If stress can be kept within constructive bounds,
it can increase a person‘s efficiency and improve
performance.
• Networking—One way to relieve the loneliness of running a
business is to share experiences by networking with other business
owners.
• Getting Away from It All—The best antidote could be a well-
planned vacation.
• Communicating with Employees—Entrepreneurs are in close
contact with employees and can readily assess the concerns of their
staff.
 Dealing with Stress
• Finding Satisfaction Outside the Company—
Entrepreneurs need to get away from the business occasionally and
become more passionate about life itself; they need to gain some new
perspectives.
• Delegating—Entrepreneurs find delegation difficult because they
think they have to be at the business all the time and be involved in
all aspects of the operation.
• Exercising Rigorously—Research demonstrates the value of exercise
regimens on relieving the stress associated with entrepreneurs.
The Entrepreneurial Ego Certain characteristics that usually
propel entrepreneurs into success also, if exhibited in the
extreme have destructive implications for entrepreneurs.
 Risk in tourism
Risk Risk taker
Expose (someone or A risk taker is someone who
something valued) to danger, risks everything in the hope of
harm, or loss. achievement or accepts
greater potential for loss in
decisions and tolerates
uncertainty.
 Risk in Tourism
According to the World Tourism Organization, there are four main
sources of risks in tourism (UNWTO 2015):
1. Tourism sector and the related commercial sources (disrespect
of contracts, frauds, insufficient level of hygiene and sanitary
protection, fire, earthquake);
2. Human and institutional environment outside the tourism sector
(social conflicts, wars, terrorism, organized crime, human
trafficking);
3. Personal risk -individual travelers (poor health, crime, causing
conflict with local residents, visiting dangerous places, loss of
money and documents, etc.)
4. Physical risks from the environment -natural, climatic, epidemics
(vaccination, visits to dangerous areas, exposing to dangers during
natural disasters and epidemics)
 Types of risk
1. Financial
2. Career
3. Family and social,
4. Psychic
 1. Financial risk
• Financial risk is the type of specific risk that encompasses
the many types of risks related to a company's capital
structure, financing and the finance industry. These include
risks involving financial transactions, such as company
loans and exposure to loan default (failure to repay a loan
according to the terms agreed). The term is typically used
to reflect an investor's uncertainty of collecting returns and
the accompanying potential for monetary loss.
• Financial risk is the risk of a business running out of
finances. Entrepreneurs need to have a good financial
sense in order to run a business successfully. They need to
manage cash flow, predict demand and supply so that
financial decisions can be taken properly.
 Career
• Career risk-Some entrepreneurs start company after company (aka
“serial entrepreneurs”), others turn back to the job market.
Unfortunately, your resume can look odd after a few years at
startups, making it tough to fit neatly into any well-defined
corporate roles. And if employers sense that you’d rather be
starting your own businesses than holding a job, they might
perceive you as a “flight risk”.
• Lack Of Steady Pay cheque. ...
• Stay Wary Of Disruptions. ... Competition
• Fluctuations In Currency. ...
• Cyber Security Risks. ...
• Trusting Your Business Partner or A Key Employee. ...
• Sacrificing private capital.
• Investing Your Personal Time & Health
 Family and social
• The risk of walking away from security and career path
to create something new. The risk of taking yourself
and your family into an unfamiliar storm of stress and
uncertainty. The risk that you’ve miscalculated an
opportunity, or your own internal resources as you
plunge into a new venture.
• There are also risks beyond the purely financial. When
you invest everything you have into a business, you will
almost certainly be limiting your ability to spend time
with your family. There can be a high level of emotional
strain associated with entrepreneurship.
 Psychic
• Psychic risk-It is greatest risk to the well being
of an entrepreneur, money can be replaced a
new house can be built, friends and family can
adapt. But some entrepreneurs who have
suffered financial catastrophes have not been
able to bounce back specially immediately.
The psychological impact has been considered
as the most serious one.