Entrepreneurship along with Business Risk-Free-Samples for Students

Question: Write a Literature review of business , regarding new business trends. Answer: Introduction It is evident from various surveys that micro, small, along with medium enterprises account for at least sixty percent of the total jobs around the society. Therefore, such enterprises pose the fundamental influence on the growth of the economy of different countries. The availability together with access to business development services providers tend to be vital for the micro, small and medium enterprises to be able to learn and acquire advanced understanding in relation to operations, marketing, management, advancement in technology, resourcing, and innovation. Therefore, it is important that the desk review is made on past investigation that focuses on the topic of the risk-taking propensity amongst entrepreneur (Petrakis 2014, p. 89). Besides, the literature reviewed will comprise of some relevant studies that had been done in the past specifically those that relate to the issue of investigation. Additionally, investigations related to the general concern of entrepreneurship wil l also receive effective review to shed additional insight on the matter of study. This investigation commences with the examination of the concept of entrepreneurship with special references to the process of the entrepreneurial process along with how entrepreneurs play their function in the process. The examination is then followed by the examination of risk as well as its usefulness to the global economy. Objectives of the project The principal objective of this research paperwork is to examine the entrepreneur risks involved in operation of different businesses around global society. Other specific objective include To investigate causes of entrepreneurship risks To examine how to control cases of risk occurrences in business marketplaces To investigate risk taking propensity in entrepreneurship Scope of the research It targets to examine different entrepreneurship processes that continue to be the same and the functions. The paperwork aim at examining the nature of entrepreneur that is universal regardless of business operations. Besides, it concentrates on illustrating how presence of hereditary risks exists in every process that commences from the ideation, creation of enterprise, conceptualization, commercialization, together with ending with the development of the enterprise. Furthermore, it concentrates on illustrating how all business operations around the world face risk within their activities regardless of its size. The focus of the paper largely focus on illustrating how business operators have to identify, manage, assess, and monitor the business opportunities and risks of organizations. It remains to be a wide survey that illustrates how disappointments in the current business operations are always caused by misjudgments, management of risk, along with changes in corporate requiremen ts of governance. There are also increasing expectations of stakeholder for entrepreneurs to efficiently manage all risks that occur within the organization. Entrepreneurship Entrepreneurship remains to be the process that is universally linked with the founding of ventures of business by acquiring or expanding the existing operations of the business. Entrepreneurs have been considered as bearers for risks along with uncertainties in process of making choices of business. Entrepreneurship helps in making innovations for advanced goods, advanced approaches to production, the new marketplace, and new kinds of industrial organizations. Lawless (2012, p. 1230) concurred those entrepreneurs tend to assumed risk with the intention to improve operations of the business. Besides, Fourati et al., (2017, p. 1049) was able to recognize entrepreneur to be the manager or business owner who is not employed elsewhere in marketplaces. Furthermore, Nitani and Riding (2014, p. 257)described the entrepreneur to be the manager of any business who has the function of making decisions and taking different responsibility as the decision maker while taking responsibility for the attained decisions. Therefore, from the above definitions, many researchers can be capable to conclude of the micro, small and medium enterprises where they may not be the founder but not only consist of responsibility in process of attaining decision and but also takes the responsibility together with risk for the decision reached. Endeavors of entrepreneurship comprise of the process of gathering of productive resources in the attempt to start the business operations with the expectation with the expectation of offering the reasonable income to the entrepreneurship or operators of the small business. These resources comprise of manpower, devices, time, money, and fundamental raw materials that may comprise of some risks in procuring resources. For instance, the risk in the business of not attaining basic raw materials as required to producing the ideal product or damage to the equipment as well as devices means losses to the entrepreneur (Miles 2014, p. 14). The available risk with associated risk needs to be recognized and managed to help in cases of minimizing losses and to improve revenues. Micro, small, and medium enterprises These enterprises are and will stay to be the backbone of economic progress around the global society. Without any doubt, micro, small, as well as medium companies contribute largely to the strength of the economy of most nations. Therefore, the definition of micro, small, as well as medium-sized enterprises need to be grouped within the context of the nation in which they perform their functions, but their functions vary according to the region of operation. Schwartz et al., (2013, p. 1583) defined micro, small, together with medium-sized enterprises in marketplaces to be the firm that is capable of employing one hundred and fifty full-time employees with production sales turnover of at most twenty-five million dollars. The definition of these enterprises covers the process of manufacturing that comprise of service deliveries, primary agriculture, agro-based activities, and advancement in technology usage among other factors. The risk in business operations Risk has become common in the field of economies from early days of the 1920s. It started to be the major area of focus in the learning discipline to note it cause and how to control and eliminate it in the business sector. Therefore, the definition of risk in business operations has been extended within the sector that deals with the process of making decisions by use of several kinds of literature in the field of management, insurance, environmental, along with psychology among other subjects. Therefore, risk along with its elements in business comprises of complicated definition viewed and considered differently in relation to the taxonomy that the person uses it during its operations (Mayer 2013, p. 1498). Besides, the general definition of risk remains to be the cases of uncertainty that happen due to the occurrence of losses during business operations. The risk remains to be the degree of different cases of uncertainty along with potential loss that may follow from the specifie d behavior. These cases of uncertainties are in relation to the occurrence of the event that may be undesirable for business operations. Apart from the cases of difference in the definition of risk, two themes that are common in risk remain to be lost together with uncertainty in business operations. The term probability of the risk occurring in business operations may comprise of the connotation of the likelihood of particular individual as compared to the chance to other individuals. Most entrepreneurs are risk takers in their operation by nature (Parnell 2015, p. 231). The entrepreneur faces losing everything that they had invested in the business startup. Therefore, there are several risks that every entrepreneur faces when the plan to begin the new business operations. In the competitive marketplace and increasingly populated ecosystem, entrepreneurs still face several challenges when commencing the new business, some of these challenges can result in loss of profit and cases of bankruptcy (Hambock et al., 2017, p. 1052). Therefore, with any fresh venture of business, there is the element of risk involved along w ith various thoughts needs to be given to the kind of business an individual plan to commence. Uncertainty can be a unique work specifically if the term of uncertainty in business operations refers to the element of risk and uncertainty as for the state of mind of the person that processes the risk (Leonard and Clementson 2012, p. 3). The risk in business operations involves the loss of operations leading to undesirable outcomes during business operations. The loss in business operations through the rising of risks remains to be the involuntary reduction in the capacity of the entity towards satisfies wants of people. Therefore, many scholars have failed to agree in separating the awareness of people, their perception, along with attitude from the general concept of business operational risks. Entrepreneurial risk No matter how well an individual plan as well as prepare, starting any business operation in any global marketplace is a gamble. The entrepreneur remains to be the risk taker as it is prone to assume risks of the business. Any error in making the decision on business operations is the probable source of threat or chance in assuring the business success during operation (Baumgartner et al., 2013, p. 1099). Any error in the process of establishing business decision continues to be the probable source of treat or chance in assuring the business success. The distinctiveness of business entrepreneurs, tight, and rivalry situation of the economy has obligated capability of entrepreneurs on predicting the risks of business operations (Clogston 2016, p. 382). Therefore, ability to take the risk as being the inherent attribute of the venture of entrepreneur shows that the entrepreneur remains to be profit from the potential that is unexploited making an individual also be inevitably deal with the massive degree of uncertainty. Risks within business operations occur from the uncertainty that concern the future along with the impact of present judgments. Therefore, choices of business operations need to comprise of the assessment of their results along with the possibility that the results might differ from expectation. There is always the need for entrepreneurs to confront the rising problem of uncertainty in business operations. Besides, there are many types of risk in the present business operations (Aspromourgos 2014, p. 32). The occurrences of risk on business can be applicable to entrepreneur business in process of making decisions on their operations. Some of these risks comprise of credit risks, price risks, along with pure risks. The cases of price risks consist of marketplace risks that associate to the victory of the plan of every business operation, the various demands of commodities, along with issue relating to price and cost that include the price of output and risks in the input of prices. Mo reover, price risk in operation of business relates to financial risks that comprise of credit, the flow of cash, foreign currency, together with working capital (Eraydin et al., 2010, p. 531). Every risk associated with operations of the business are not monetary, yet the appropriate deal of risk is risks resulted from business pressures that relate to the growth of the business, the culture of the organization, together with management of business information. Additionally, another kind of business operational risks includes credit risks. The credit risks in business operations refer to the chance along with the magnitude of financial loss that occurs in the process of spending money. Major types of business operation risks include pure risks. Such kind of risks always influence operations of business due to the reduction in the valuation of assets of business like the wreck or demolition of construction, records of the business, equipment, inventory, or other property. The pure risk can occur in any business operations as a result of costs incurred after the break of fires, flooding, or any other disaster that negatively affect ideal operations of the business (Burns et al., 2015, p. 99). Moreover, pure risk also comprises of losses that the company incur due to the damages incurred during shipping or losses that occur because of rising in criminal cases that comprise of robbery or misappropriation. Therefore, most entrepreneurs ace the range of pure risks in their operations and they need to control as well as manage lest they endanger the future operations of the business of the companies (Nitani and Riding 2014, p. 265). Additionally, pure risks in business op erations comprise of legal liability for damages for harm to clients, shareholders, and suppliers, along with the injury to workers that result from different accidents, harmful commodities, and inappropriate practices of business, professional malpractice, and omission of essential elements in business operations (Kim and Min 2015, p. 43). The other pure risk in operations of entrepreneurs remains to be the risk associated with paying benefits to workers that get injured under laws that look at the safety of employees. Risk taking propensity Investigation of the process of behavior towards the ideal process of making decisions has categorized the risk into different elements. Some of these risks comprise of perception, propensity, along with preparedness to take the risk. Risk propensity in operations of business refers to the perceived probability that aims at attaining rewards that associate with achievement of planned scenario needed through entity prior subjection to different consequences that associates with failures, the alternative scenario that offer less reward, along with less severe effects that the proposed situation (Bernat et al., 2016, p. 273). The idea of risk-taking around business operations remains to be one of the different dimensions of the orientation of entrepreneurship of a corporation. It stands to be the readiness of every business organization to consign important resources to chances that might remain to be uncertain. Besides, the perception of risk stays to be the subjective interpretation o f loss expected affected by different views of people of the uncertainty of the decision made and the impact of the decision (Hambock et al., 2017, p. 1053). Besides, risk propensity within business operation stays to be the general tendency of an individual towards taking or avoiding risk within the specified type of context in process of making operational decisions. Therefore, risk propensity within entrepreneur is the shared tendency for business stakeholders to accept or avert risks during their operations. All these factors concerning risk propensity make most entrepreneurs be risk takers by nature of their operations. Sometimes, entrepreneurs face losing their business inputs or everything that they invest into the starting of a business (Fourati and Affes 2014, p. 2). Therefore, when choosing ideal business operation activities, entrepreneurs have to leave behind the security as the wage earned behind along with the extra time and resources to use in other operations. In many cases, entrepreneurs face the point when different unplanned events happen as the result of failed attempts at endeavors of risk. The cases of ups and downs of the economy and new trends of market pose the danger to new operations of businesses (Fellnhofer 2017, p. 173). Lack of proper management of businesses tends to get affected depending on nature along with business location, prospective competition, along with product pricing. Therefore, market risks can then be effectively managed trough idea of conductin g ideal marketplace analysis. Conclusion This literature paperwork presents the review of previous data on the risk-taking propensity of entrepreneurs. The research on this article has attempted to organize the past survey outcomes to develop the understanding in relation to the topic of entrepreneurship and risks as a new business trend around markets. The article has summarized the empirical evidence of ideas of entrepreneurship and risks so as to address the major concerns for the focus on this investigation. From the literature work above, the discussion on entrepreneurs risks taking propensity centered on two variables that affect the risk-taking propensity such as demographic together with characteristics of the business. The impact of these variable predictors on entrepreneurs risk-taking propensity has also been investigated. From the explanation, it is clear that demographic along with business traits are the essential components of risk-taking propensity. Therefore, considering the inadequate empirical investigati on for micro, small, medium corporations risk-taking propensity in different places around the globe, there is a need for further investigation to address these issues. It will be essential in the next proposal to study the conduct investigations on different risks that affect operations of micro, small and medium enterprises. The chapter should also offer insight into appropriate survey design employed to interrogate the survey problem with particular reference to activities of sampling, methods of collection of data, along with the techniques employed in analyzing collected data. List of References Aspromourgos, T 2014, 'Entrepreneurship, risk and income distribution in Adam Smith', European Journal of the History of Economic Thought, vol. 21, no. 1, pp. 21-40. Available from: 10.1080/09672567.2012.683025. [24 April 2018]. 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