Risk

The person who sets up and runs the business, taking these risks, is an entrepreneur.

An entrepreneur is someone who sets up and runs a business, taking risks in the hope of gaining rewards. Before starting, they must weigh the possible benefits against what could go wrong. A promising idea does not guarantee that enough customers will buy, that costs will stay affordable or that competitors will leave the business unchallenged.

Customers might buy less than expected, costs might rise or competitors might attract customers away. This uncertainty creates risk: the possibility of an unfavourable outcome.