Chapter 8.1, Problem 3R

To determine

To evaluate:The reasons people would prefer taking riskin a business of their own rather than work for a wage.

Explanation of Solution

One of the most significant capabilities of becoming an entrepreneur is being able to take fast decisions that determine the company's destiny more often than not. At the company's helm, entrepreneurs always have to make the planning at the right time which can decide their company's future. A person who organizes, handles, and bears the risks of a company to make a profit is termed an entrepreneur. To become an entrepreneur, people bring their ideas into practice. They launch projects because theoretically, employers can't show their value. Working for a wage limit their capabilities as they work under the guidance and need of another person. People resist following others and want others to follow them. Therefore, they prefer to take risks as entrepreneurs rather than work for a wage.

Economics Concept Introduction

Introduction: Good entrepreneurship means taking risks. Nonetheless, taking a risk does not mean working carelessly into business, and only expecting fantastic results. Risk-taking entails good preparation and hard work.