Risks and Rewards of

Going into Business or

Entrepreneurship
 After the completion of this
chapter, you will be able to:
1. Identify and pursue business opportunities to develop innovation and risk-taking abilities.
2. Create and manage budgets to enhance financial planning and decision-making skills.
3. Assess market trends and competition, formulating and executing plans aligned with long-
term goals.
4. Analyze challenges, break them down, and explore solutions to develop critical thinking
and decision-making skills.
5. Integrate ethical considerations into decision-making to align choices with ethical
principles and stakeholder interests.
6. Implement effective project management practices, developing skills in planning,
organization, and successful project execution.
Calculating risks and
reaping rewards into
Business or
Entrepreneurship

Analysis:

1. What are risks going into business

or entrepreneurship?

2. Why taking risk?

3. As future entrepreneur, are you

risk-taker?

4. What are rewards reaped after

taking the risk?
 Meriam Webster dictionary
defined calculated risk (noun)
1: a hazard or chance of failure whose degree of probability
has been reckoned or estimated before some undertaking is
entered upon.

2: an undertaking or the actual or possible product of an

undertaking whose chance of failure has been previously
estimated.
 Risks of Going into Business or
Entrepreneurship

Possibility of failure
Unpredictable business conditions
Long hours of work
Unwanted or unexpected responsibilities
Possibility of
failure

There is always the

possibility of failure-
a single wrong
business decision
can bring a business
to bankruptcy.
Unpredictable
business
conditions
A small business is
vulnerable to sudden
changes in the business
environment. In a fast-
paced industry, a small
firm may not have the
financial capability of
the organizational
capacity to respond
adequately to new
opportunities and their
concomitant problems.
Long hours of
work

A prospective
entrepreneur must
be ready to spend
most if not all his
waking hours in the
business. Also,
family time and
personal affairs may
be sacrified.
Unwanted or
unexpected
responsibilities

The entrepreneur
may eventually find
himself saddled with
management
responsibilities he
did not bargain for.
 Benefits of Taking Calculated Risks in
Business
Innovation and Growth
Increasing Your Competitive Advantage
Learning and Adaptability
Promoting Creativity
Discovering Untapped Opportunities
Overcoming Fear and Strengthening Resilience
Creating a Culture of Continuous Improvement
Developing a Competitive Advantage
 Taking calculated risks in business provides a plethora of benefits
that can drive success and growth. Businesses can unlock new
opportunities, foster innovation, and gain a competitive advantage in
the marketplace by stepping outside their comfort zone. Businesses that
take calculated risks can reap significant rewards, such as increased
profitability, market presence, and brand reputation. Businesses can
make informed decisions that are aligned with their strategic objectives
and long-term vision by carefully assessing potential risks and rewards.
Rewards of Going into Business or
Entrepreneurship
 What is Reward?

Meriam Webster dictionary defined Reward (noun)

- something that is given in return for good or evil done or
received or that is offered or given for some service or attainment.

Reward system refers to all the monetary, non-monetary and

psychological payments that an organization provides for its
employees in exchange for the work they perform.
 Rewards of Going into Business or
Entrepreneurship
Having unlimited opportunity to make money
Being your own boss
Tapping your creativity
Overcoming challenges and finding fulfillment
Helping others
Building an entrepreneurial legacy
Having
unlimited
opportunity to
make money
When you have your own
business, you will most
certainly have unlimited
potential to earn money. How
much money you earn
depends on the time and effort
you put into your enterprise.
Successful entrepreneurs have
eanerd their wealth and
prestige through hard work
and by having the right
product for the right market at
the right time.
Being your
own boss

As manager of your
business, you make the
decisions for your enterprise
and take full responsibility
for these. The quality of
these decisions will
translate into either gain or
loss for your business. Being
your own boss means you
are in control of your future.
You have a better grasp of
what you want to be.
Tapping your
creativity

A business usually
starts out as an idea.
You will have the
opportunity to
harness this
creativity and turn
your idea into
products and
processes.
Overcoming
challenges and
finding fulfillment
Starting a business is by
itself if an
accomplishment,.
Running a business tests
an entrepreneur’s
capability in securing and
managing resources.
How well a business
turns out depends on
the owner’s ability to
face challenges and
overcome difficulties.
Helping
others

In the process of running

a business, an
entrepreneur employs
workers, and pays them
income which improves
their lives. An
entrepreneur who
succeeds and grows also
helps suppliers, sub-
contractors, dealers and
other businesses
connected to him
succeeds and grow too.
Building an
entrepreneurial
legacy
A business can be a
lasting legacy to the
family. It can ensure
employment for some
members of the
family. It can create an
enterprising culture
that can be handed
down through the
generations.
 One of the biggest rewards of entrepreneurship is the potential for financial gain.
Successful entrepreneurs can make a lot of money, and in some cases, become billionaires.
Additionally, starting a business can give you the freedom to be your own boss and work
on your own terms.

Risk And Reward Are Interchangeable: You Have To Take Risks To Reap The
Rewards

1. Let go of fear to reap the rewards of risk.

2. Learn from failures to achieve success.
3. Reaping rewards of a well-made partnership.
4. Strategy to hire the right people, so you have less “fat” to trim.
5. The Takeaway: Risk and reward go hand in hand.
Thank you for listening!!!

Prepare by:

ANGELINE A. LOGATIMAN
BSAM Faculty