Risk Taking in Small Business

     An entrepreneur is a calculated risk taker. They are excited at the challenge. Entrepreneurs avoid situations of low risk because there is no challenge and avoid high risk situations, because they want to succeed. They like the challenge that can be achieved.

What is a risky situation?
      Risk situation occurs when you are asked to make a choice between two or more alternatives, which would result is unknown and must be judged objectively. This situation contains the potential for failure and potential for success. The greater the possibility of loss the greater the risk is.

      Most entrepreneurial traits are interrelated. This is all the more force on risk-taking behavior. Some regard include:
1. Taking risks associated with creativity and innovation as well as an important part in turning ideas into reality.
2. Taking risks associated with self-confidence
3. Knowledge realistic about your own abilities is also important.

In taking decisions there needs to be an alternative that should be taken, namely "risky" alternative or "conservative" alternative depends on:
a. The attractiveness of each alternative
b. How extent to which you are willing to lose.
c. Relative likelihood of success and failure
d. How much do you improve?

      Most entrepreneurial traits are related, among others:

•  Taking risks associated with creativity and innovative.
•  Taking risks associated with self-confidence.

      Personal risk-taking is essential in realizing your own potential as an entrepreneur. For example: taking risks in a personal relationship with wife, friends and neighbors will help you gain the experience to assess and take risks and deflect small risk reward potential.

Developing Creative Ideas
      Risk taking and creativity are important characteristics of the entrepreneur. By trying to be more creative, you also become more aware of good ideas, then you will be better prepared to take risks that need to implement your ideas are the most productive. Don’t ever force your ideas on someone. People need time before they can accept something new. The idea that involves the organization's future is risky. Every person usually somewhat hesitant if  there is a risk.
      To reduce the risk of rejection of an idea, following suggestions may help:
• Try to express your ideas to the wife or your friends.
• Choose a place and time to put forward your ideas to others.
• Put forward your ideas little by little